Question

On sales of rs 2,00,000 fixed cosy is rs 30,000 and Pv ratio is 40% the profit will be____?​

Answer 1

2,30,000 ok this correct answer

Answer 2

Explanation:

Given:

sales are Rs. 2,00,000

fixed cost Rs. 30,000

PV ratio is 40%

The profit = ??

Profit = Contribution - Fixed cost

Or

Fixed Cost = sales × P/V Ratio - Profit

=> 30,000 = 2,00,000 ×0.4 - Profit

=> 30,000 = 80,000 - Profit

=> Profit = 80,000 - 30,000

Profit = ₹ 50,000

Hence, the profit will be ₹ 50,000