CA Inter P4 · Chapter 13 · Question 5 of 10
Fixed costs are ₹1,78,000 and the P/V ratio is 24%. The sales required to earn a profit of ₹2,30,000 are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) ₹17,00,000.00
Explanation
Required sales = (fixed cost + desired profit) / P/V ratio = (₹1,78,000 + ₹2,30,000) / 24% = ₹4,08,000 / 0.24 = ₹17,00,000.
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