Question

If sales are Rs. 200000 fixed cost Rs. 30000 and the PV ratio is 40% the profit will be.​

Answer 1

Answer:

The profit will be Rs. 50,000

Explanation:

Given :

Sales = Rs. 2,00,000

P/V Ratio = 40%

Fixed Cost = Rs. 30,000

To find :

The Profit

Solution :

★ Profit = Contribution - Fixed Cost

Contribution = Sales × P/V Ratio

⇒ 2,00,000 × 40%

⇒ 2,00,000 × 40/100

⇒ 2,00,000 × 0.4

⇒ 80,000

Contribution = Rs. 80,000

★ Profit = Contribution - Fixed Cost

⇒ 80,000 - 30,000

⇒ 50,000

Profit = ₹ 50,000

Therefore, the profit will be Rs. 50,000

Answer 2

Answer:

The profit is Rs 50,000

Explanation:

As per the data given in the question,

We have,

Sales = Rs 200000

Fixed Cost = Rs 30000

PV Ratio= 40%

As we know,

Profit = Contribution - Fixed Cost

Now,

Contribution = Sales × P/V Ratio

$=200000\times\frac{40}{100}\\ =80000$

Therefore, Contribution = Rs. 80,000

Hence,

Profit = Contribution - Fixed Cost

=80000-30000

=50,000

So, The profit is Rs 50,000

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