Fixed cost Rs 90,000 and contribution ratio 30 percent. Break-even sales?
ARs 3,00,000
BRs 2,70,000
CRs 2,00,000
DRs 1,20,000
Answer & Solution
Correct answer: A. Rs 3,00,000
Break-even sales equal fixed cost divided by the contribution ratio, 90,000 divided by 0.30 giving Rs 3,00,000.
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