Break-even Analysis - Part 5 - MCQs with answers

Break-even Analysis - Part 5 - MCQs with answers


1. Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.

a) Rs 37,500
b) Rs 33,000
c) Rs 38,000
d) None of the above

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ANSWER: a) Rs 37,500



2. What is Margin of Safety if Sales is 20,000 units and B.E.P is 15,000 units.

a) 35,000 units
b) 5,000 units
c) Rs 5,000
d) Rs 35,000

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ANSWER: b) 5,000 units



3. Calculate margin of safety if sales is Rs 3,00,000 and B.E.P is Rs 4,50,000.

a) Rs1,00,000
b) Rs 1,50,000
c) Amount of sales < B.E.P, therefore no margin of safety
d) None of the above

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ANSWER: a) Rs1,00,000



4. Determine sales in rupees for desired profit if fixed cost is Rs 10,000, Variable cost is Rs 30,000, Sales is Rs 50,000 and desired profit is RS 5,000.

a) Rs 73,500
b) Rs 75,000
c) Rs 5,000
d) Rs 37,500

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ANSWER: d) Rs 37,500



5. What will be sales in rupees for desired profit if fixed cost is Rs 30,000, desired profit is Rs 15,000 and P/V ratio is 30%?

a) Rs 1,50,000
b) Rs 1,00,000
c) Rs 2,00,000
d) None of the above

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ANSWER: a) Rs 1,50,000



6. Calculate sales in rupees for desired profit if fixed cost is Rs 10,000, selling price is Rs 20 per unit, Variable cost is Rs 15 per unit and desired profit is Rs 1 per unit.

a) Rs 20,000
b) Rs 50,000
c) Rs 70,000
d) Rs 10,000

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ANSWER: b) Rs 50,000



7. Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16.

a) 5,000 units
b) Rs 5,000
c) Rs 10,000
d) 10,000 units

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ANSWER: a) 5,000 units



8. What will be sales in units if fixed cost is Rs 50,000 Contribution per unit is Rs 60 and desired profit per unit is Rs 10.

a) 6,000 units
b) Rs 1,000
c) 1,000 units
d) Rs 6,000

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ANSWER: c) 1,000 units


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