A company’s sales could decrease by 50% before it starts incurring losses. And, for every Re. 1 of sales, it can contribute 40 paise towards fixed…
CA Intermediate · Cost and Management Accounting · RTP · September 2025
A company’s sales could decrease by 50% before it starts incurring losses. And, for every Re. 1 of sales, it can contribute 40 paise towards fixed costs and generating profit. For the current year, the company’s fixed cost amounts to 5,00,000. CALCULATE the Projected sales.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
₹ 25,00,000
Topics: Marginal Costing
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