Question

Find variable cost
Sales 150000
Fixed cost 30000
Profit 40000

Answer 1

Answer:

Variable cost = 150000-30000-40000

= 80000

Answer 2

Answer:

Variable Cost = ₹ 80,000

Explanation:

This is the concept of Cost Volume Profit Analysis which is used to determine the economic condition of product which is going to be manufactured. Cost Volume profit analysis help decision maker to make proper analysis about the cost and volume of product.

Formula as per Cost Volume Profit Analysis:

Sales - Variable Cost = Contribution

then Contribution - Fixed cost = Profit

In this Question, we need to find Variable Cost

For calculating variable cost; first we need to find contribution

Profit + Fixed cost = Contribution

Substitute the value in formula;

₹40,000 + ₹30,000 = ₹70,000

Here, Contribution -= ₹70,000

Now, variable cost

Variable cost = Sales - Contribution

Variable cost = ₹1,50,000 - ₹70,000

Variable cost = ₹80.000

#SPJ3