Total sales Rs. 20,00,000; Fixed expenses Rs. 4,00,000; P/V Ratio 40%; Break-even capacity in percentage is .a.45%.b.50% .c.60% .d.40%

Question

Total sales Rs. 20,00,000; Fixed expenses Rs. 4,00,000; P/V Ratio 40%; Break-even capacity in percentage is .a.45%.b.50% .c.60% .d.40%
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Solution 1

To find the break-even capacity in percentage, we first need to calculate the break-even point in terms of sales. The formula for the break-even point in sales is Fixed Expenses / Contribution Margin Ratio.

Here, the Contribution Margin Ratio (P/V Ratio) is given as 40% or 0.40.

So, the break-even Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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