Question

A company has the following: Sales ₹10,00,000; Variable cost 60% of sales; Fixed cost ₹1,20,000. Contribution margin = ? Break-even sales = ?

A CM% = 40%; BE sales = ₹3,00,000
B CM% = 60%; BE sales = ₹2,00,000
C CM% = 50%; BE sales = ₹2,40,000
D CM% = 40%; BE sales = ₹3,00,000
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