In two consecutive quarters, a company reported the following performance: Quarter 1 sales were - 2,10,000 with a profit of 12,000, while Quarter 2…

CA Intermediate · Cost and Management Accounting · RTP · May 2026
In two consecutive quarters, a company reported the following performance: Quarter 1 sales were - 2,10,000 with a profit of 12,000, while Quarter 2 sales rose to 2,40,000 with a profit of 24,000. Assume that the fixed cost remained constant across both quarters and that the company did not introduce any new product lines. Based on the above information, the P/V ratio must be:
(A) 20%
(B) 30%
(C) 40%
(D) 50%

Suggested Answer and Working Notes:

Correct Answer: Option (C)

40%

Topics: Marginal Costing

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic