# Break-even Analysis - Part 3 - MCQs with answers

## Break-even Analysis - Part 3 - MCQs with answers

**1. P/V ratio can be calculated on the basis of variable cost ratio as**a) 1 - Variable Cost Ratio

b) 1 + Variable Cost Ratio

c) 1/Variable Cost Ratio

d) None of the above

View Answer / Hide Answer**ANSWER: a) 1-Variable Cost Ratio **

**2. Determine P/V ratio if Sales is Rs 80,000 and Variable cost is Rs 60,000.**a) 40%

b) 25%

c) 50%

d) None of the above

View Answer / Hide Answer**3. Determine P/V ratio if Sales is Rs 1,00,000, Fixed cost is Rs 30,000 and Profit is Rs 20,000.**a) 25%

b) 50%

c) 45%

d) None of the above

View Answer / Hide Answer**4. Determine P/V ratio if Sales per unit is Rs 10 and Variable cost per unit is Rs 7.**a) 25%

b) 50%

c) 45%

d) 30%

View Answer / Hide Answer**5. Compute P/V ratio if variable cost ratio is 60%.**a) 40%

b) 50%

c) 45%

d) 30%

View Answer / Hide Answer**6. Given sales is Rs 2,00,000 and Rs 4,00,000 in year 2013 and 2014 respectively. Profit is Rs -10,000 and Rs 20,000 in 2013 and 2014 respectively. Compute P/V ratio.**a) 40%

b) 30%

c) 25%

d) 50%

View Answer / Hide Answer**7. Given sales is Rs 2,00,000 and Rs 4,00,000 in year 2013 and 2014 respectively. Cost is Rs 1,40,000 and Rs 2,40,000 in 2013 and 2014 respectively. Compute P/V ratio.**a) 40%

b) 30%

c) 25%

d) 50%

View Answer / Hide Answer**8. A company produces and sells three types of products namely X, Y and Z. Total sales per month is Rs 60,000 in which the share of these three goods are 40%, 40% and 20% respectively. Variable costs of these three goods are 40%, 50% and 60% respectively. Compute combined P/V ratio.** a) 40%

b) 52%

c) 25%

d) 50%

View Answer / Hide Answer**9. Profit on sales is measured as **a) Sales*P/V Ratio – Fixed cost

b) Sales*P/V Ratio + Fixed cost

c) Sales + P/V Ratio + Fixed cost

d) None of the above

View Answer / Hide Answer**ANSWER: a) Sales*P/V Ratio – Fixed cost **

**10. Sales for desired profit is measured as **a) (Fixed cost + profit)/ (P/V Ratio)

b) (Fixed cost + profit) * (P/V Ratio)

c) (Fixed cost - profit)/ (P/V Ratio)

d) None of the above

View Answer / Hide Answer**ANSWER: a) (Fixed cost + profit)/ (P/V Ratio) **