alleryStart learning →Price is Rs 40, variable cost Rs 24 and fixed costs Rs 96,000. What are break-even sales?
ARs 2,40,000
BRs 4,00,000
CRs 3,00,000
DRs 1,60,000
Answer & Solution
Correct answer: A. Rs 2,40,000
Contribution ratio is 16/40 = 40%, and 96,000 divided by 0.40 is Rs 2,40,000.
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