Question
A company sells 2 products – A and
A company sells 2 products – A and
B. Product A sales were Rs.2 lac and it had a contribution margin of 20% while Product B sales were Rs.1 lac with contribution margin of 40%. If the sales of Product A and Product B were reversed to 1 lac and 2 lac respectively how would the total contribution to the company change?
More Basic Accounting Concepts Questions
- The discount rate that makes the present value of expected cash flows from the project equal to the initial cost of the project is called:
- A bank has Tier I capital of ₹900 crore and Tier II capital of ₹300 crore. Risk Weighted Assets increase from ₹8,000 crore to ₹10,000 crore due to large sa...
- A company uses the Written Down Value (WDV) method to calculate depreciation on its fixed assets. On which of the following value of the fixed asset, will ...
- Owners’ equity is shown as the liability in the balance sheet. This is based on the accounting concept:
- A company decides not to record a calculator worth Rs.500 as a fixed asset and instead expenses it off. Which accounting concept is being applied?
- What is LIBOR?
- As per accounting standards, inventory is to be valued at cost or net realizable value. Which of the accounting principle forms the basis of this standard?...
- A company has Sales ₹400 crore, EBITDA ₹60 crore, Interest ₹20 crore, Depreciation ₹15 crore, Tax ₹5 crore. What is the Cash Profit and Interest Coverage R...
- Base case DSCR is 1.40. On 10% fall in sales, DSCR falls to 1.05. On 10% increase in cost, DSCR becomes 0.98. What is the correct appraisal inference?
- A sub‑standard asset of ₹50 crore consists of secured portion ₹35 crore and unsecured portion ₹15 crore. As per RBI provisioning norms, secured portion att...
Relevant for Exams:
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt