Question

Sales Rs. 100000 Variable cost Rs. 60000 and net profit ratio 10% . Find the fixed cost.​

Answer 1

Answer:

30000

Explanation:

according to marginal cost statement

sales - variable cost = contribution - Fixed cost = profit or loss

according to ques

100000-60000 = 40000 -fc -10%

fc = 40000-10000

fc = 30000

Answer 2

Fixed cost will be ₹30,000

To calculate fixed cost, we need to prepare income statement. Here is the calculation of computation of fixed cost:

Sales= ₹1,00,000

less: variable cost= (60,000)

= contribution= ₹40,000

less: fixed cost = (30,000)

= Net profit= ₹10,000

Since we are given net profit ratio, we need to find net profit to calculate fixed cost:

Net profit ratio = net profit/sales * 100

                10% = net profit/1,00,000 * 100

net profit = ₹10,000