Question

    From the following information calculate the amount of

    sales to earn a desired profit of Rs.12,000 Fixed Cost: 24,000 Selling Price: 10 per unit Variable cost: 6 per unit
    A 50,000 Correct Answer Incorrect Answer
    B 90,000 Correct Answer Incorrect Answer
    C 30,000 Correct Answer Incorrect Answer
    D 60,000 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Calculation of PV ratio = Contribution / Selling Price *100 [(10-6)/10] * 100 = 40% Sales to earn desired profit = Fixed Cost + Desired Profit / PV ratio (24000+12000) / 40%

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