Calculate the sales required to earn a profit of Rs 1 20 000 if fixed cost is Rs 1 80 000 and P V ra...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

Calculate the sales required to earn a profit of Rs. 1,20,000/-, if fixed cost is Rs. 1,80,000 and P/V ratio is 37.5%

Rs. 4,00,000

Rs. 8,00,000

Rs. 5,00,000

Rs. 3,00,000

Desires sales to earn desired profit is calculated by applying the following formula:

Fixed Cost (+) Desired Profit/P/V ratio

In the given problem, Desired Sales= 1,80,000 (+) 1,20,000/0.375=

Rs. 8,00,000/-

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