alleryStart learning →P/V ratio is 40%. Sales rise by Rs 50,000 with fixed costs unchanged. Profit rises by?
ARs 12,500
BRs 50,000
CRs 20,000
DRs 30,000
Answer & Solution
Correct answer: C. Rs 20,000
Only contribution adds to profit once fixed costs are covered: 40% of 50,000 is 20,000.
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