Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, then profit will be ……..
A)15000
B)12000
C)3000
D)10000

Name: Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, then profit will be …….. A)15000 B)12000 C)3000 D)10000
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Question

Quizplus · Accepted Answer

The variable cost is 60% of sales, which is Rs. 12,000 (60% of Rs. 20,000). The contribution margin is Rs. 8,000 (Rs. 20,000 - Rs. 12,000). After deducting the fixed cost of Rs. 5,000, the profit is Rs. 3,000 (Rs. 8,000 - Rs. 5,000).

Variable Cost Ratio Is 60% Sales Rs