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Sales are Rs 5,00,000, P/V ratio 25%, fixed cost Rs 1,00,000. What is the profit?

ARs 25,000
BRs 75,000
CRs 1,25,000
DRs 1,00,000
Answer & Solution
Correct answer: A. Rs 25,000
Contribution is 25 percent of 5,00,000, or 1,25,000, and less fixed cost of 1,00,000 leaves Rs 25,000.
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