Margin of safety is ₹8,000 which represents 40% of sales. P/V ratio is 50%. Fixed cost will be —

CS Executive · Cost and Management Accounting · PYQS · June 2016
Margin of safety is ₹8,000 which represents 40% of sales. P/V ratio is 50%. Fixed cost will be —
(A) ₹6,000
(B) ₹5,500
(C) ₹6,500
(D) ₹7,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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