Marginal costing

When fixed cost increases, the break even point

• Decreases
• Increases
• remains constant
• marginally decreases

A company has a sales of Rs. 2,00,000; PV ratio 20% & Fixed cost Rs. 15000; the profit will be

• Rs. 25000
• Rs. 20000
• Rs. 35000
• Rs.40000

Contribution margin is equal to

• Fixed cost + Variable cost
• Sales - Variable cost
• Sales + Variable cost
• Sales - Fixed cost

If sales are Rs. 80000 & variable cost to sales is 70%, contribution is

• Rs. 56000
• Rs. 24000
• Rs. 70000
• Rs. 30000

If sales are Rs 5,00,000; variable costs are Rs 2,00,000 and fixed cost are Rs 2,40,000; the P/V Ratio will be

• 0.6
• 0.4
• 0.2
• 0.45

Margin of safety is referred to as

• excess of sales over break-even sales
• excess of sales over fixed cost
• excess of sales over variable cost
• excess of sales over budgeted sales

Sales are 1,000 units @ Rs 100 per unit variable cost Rs 60,000. Fixed cost Rs 28,000. The BEP in units will be

• 500 units
• 700 units
• 1,000 units
• 1,200 units

Selling price per unit is Rs 10; variable cost per unit is Rs 6; Fixed cost Rs 2,000 contribution will be

• Rs 4
• Rs 6
• Rs 3
• Rs 200

Fixed cost is Rs 30,000 and P/V ratio is 20%. Compute breakeven point.

• Rs 160,000
• Rs 150,000
• Rs 155,000
• Rs 145,000

BEP is also termed as ___________.

• No Profit-No loss point
• Only profit point
• Only Loss point
• Both profit and loss point