Question

PV Ratio of a co. is 20% and profit is Rs.64,500. If total sales is 780,000 fixed cost is ____________

Answer 1

Step-by-step explanation:

Total Sales of 7,80,000

PV Ratio is 20%

Profit is Rs 64,500

Fixed Cost = ??

Fixed Cost = sales × P/V Ratio - Profit

= 7,80,000 × 20% - 64,500

= 7,80,000 × (20/100) - 64,500

= 7,80,000 ×0.2 - 64,500

= 1,56,000 - 64,500

= 91,500

Fixed Cost = Rs 91,500

Hence, Fixed Cost is Rs 91,500