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    Question

    A company proposes to introduce a new product in the

    market. The company wants to maintain the P/V Ratio at 35%. If the variable cost of the product is Rs. 2600, what will be the selling price?
    A 7428 Correct Answer Incorrect Answer
    B 910 Correct Answer Incorrect Answer
    C 1690 Correct Answer Incorrect Answer
    D 1400 Correct Answer Incorrect Answer
    E 4000 Correct Answer Incorrect Answer

    Solution

    PV Ratio = (Sales - Variable Cost) / Sales 0.35 (Sales - 2600) / Sales 0.35 Sales = Sales - 2600 Sales - 0.35 Sales = 2600 0.65 Sales = 2600 Sales Rs. 4000

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