Yadhav Co. has annual fixed cost of ₹1,20,000. In 2015 sales amounted to ₹6,00,000 as compared to ₹4,50,000 in 2014 and profit in 2015 was ₹50,000 higher than in 2014. If there is not need to expand the company's capacit

CS Executive · Cost and Management Accounting · PYQS · June 2017
Yadhav Co. has annual fixed cost of ₹1,20,000. In 2015 sales amounted to ₹6,00,000 as compared to ₹4,50,000 in 2014 and profit in 2015 was ₹50,000 higher than in 2014. If there is not need to expand the company's capacity. The profit or loss in 2016 on a forecasted sales of ₹9,00,000 will be :
(A) ₹1,80,000
(B) ₹1,90,000
(C) ₹1,70,000
(D) ₹1,85,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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