# Break-even Analysis - Part 7 - MCQs with answers

## Break-even Analysis - Part 7 - MCQs with answers

1. Profit at any level of sales in amount is measured as

a) Sales * P/V ratio – Variable cost

b) Sales * P/V ratio + Fixed cost

c) Sales * P/V ratio – Fixed cost

d) Sales * P/V ratio + Variable cost

ANSWER: c) Sales * P/V ratio – Fixed cost

2. Profit at any level of sales in units is measured as

a) Sales (units) * Cost per unit - Fixed cost

b) Sales (units) * Cost per unit + Fixed cost

c) Sales (units) * Cost per unit

d) None of the above

ANSWER: a) Sales (units) * Cost per unit - Fixed cost

3. What will be the amount of profit if Fixed cost is Rs 20,000 Sales is Rs 1,60,000 and P/V ratio is 25%?

a) Rs 40,000
b) Rs 20,000
c) Rs 10,000s
d) None of the above

4. Determine amount of profit if Variable costs is Rs 1,20,000 Fixed costs is Rs 40,000 and sales is Rs 2,00,000.

a) Rs 30,000
b) Rs 50,000
c) Rs 12,000
d) Rs 40,000

5. What will be amount of profit if Margin of safety is Rs 50,000 and P/V ratio is 25%?

a) Rs 12,500
b) Rs 1,25,000
c) Rs 1,250
d) None of the above

6. Estimate amount of profit if Sales is 10,000 units Fixed cost is Rs 50,000, Variable cost per unit is Rs 12 and selling price per unit is Rs 20.

a) Rs 12,000
b) Rs 5,000
c) Rs 30,000
d) None of the above

7. Calculate B.E.P capacity if Fixed cost is Rs 50,000, percentage of variable cost is 66 2/3% and capacity is Rs 3,00,000.

a) 25%
b) 30%
c) 50%
d) None of the above