With P/V ratio 25% and fixed costs Rs 75,000, break-even sales equal what?
ARs 18,750
BRs 3,00,000
CRs 1,87,500
DRs 4,00,000
Answer & Solution
Correct answer: B. Rs 3,00,000
Break-even sales are fixed costs over the P/V ratio: 75,000 / 0.25 = Rs 3,00,000.
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