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      Question

      With respect to Marginal Costing, which of the following

      statement is incorrect?
      A (Break even sales value) Γ— (profit volume ratio) = Fixed cost Correct Answer Incorrect Answer
      B Contribution = Sales – Variable Cost Correct Answer Incorrect Answer
      C (Margin of safety value) Γ— (profit volume ratio) = Profit Correct Answer Incorrect Answer
      D Profit volume ratio = [(change in sales)/(change in profit)] Γ— 100 Correct Answer Incorrect Answer

      Solution

      The correct answer is D

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