Continuing same data: MOS in rupees and as a percentage of sales:
A₹3,00,000 (25%)
B₹4,00,000 (33.33%)
C₹2,40,000 (20%)
D₹5,00,000 (40%)
Answer & Solution
Correct answer: B. ₹4,00,000 (33.33%)
1. MOS in units = 10,000.
2. MOS in rupees = 10,000 × ₹40 = ₹4,00,000.
3. Total sales in rupees = 30,000 × ₹40 = ₹12,00,000.
4. MOS % = 4,00,000 / 12,00,000 = 33.33%.
_Source: ICAI BoS Inter Paper 3, Ch 14 "Marginal Costing", §14.6 Illus 7b_
Related questions
Absorption costing values inventory at:Marginal costing assumes fixed cost remains constant:Make-or-buy decision prefers buying when the outside price is:Limiting-factor decision picks the alternative that maximises:Angle of incidence is the angle between:Cash break-even point uses:Composite P/V ratio for a mix of Product A (P/V 50%, share 40%) and B (P/V 30%, share 60%)Selling price ₹40, variable cost ₹25, fixed cost ₹3,00,000. MOS at actual sales of 30,000