{"id":54808,"date":"2024-04-16T00:16:32","date_gmt":"2024-04-16T00:16:32","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54808"},"modified":"2024-04-16T00:16:32","modified_gmt":"2024-04-16T00:16:32","slug":"a-company-proposes-to-introduce-a-new-product-in-the-market-the-company-wants-to-maintain-p-v-ratio-at-25-if-variable-cost-of-the-product-is-rs-300-then-what-will-be-the-selling-price","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-company-proposes-to-introduce-a-new-product-in-the-market-the-company-wants-to-maintain-p-v-ratio-at-25-if-variable-cost-of-the-product-is-rs-300-then-what-will-be-the-selling-price\/","title":{"rendered":"A company proposes to introduce a new product in the market. The company wants to maintain P\/V ratio at 25%. If variable cost of the product is Rs. 300, then what will be the selling price?"},"content":{"rendered":"

[amp_mcq option1=”Rs. 100″ option2=”Rs. 200″ option3=”Rs. 300″ option4=”Rs. 400″ correct=”option4″]<\/p>\n

The correct answer is D. Rs. 400.<\/p>\n

The P\/V ratio is the ratio of selling price to variable cost. It is a measure of a company’s profitability. A higher P\/V ratio indicates that a company is more profitable, as it is able to generate more revenue from each unit of product sold.<\/p>\n

In this case, the company wants to maintain a P\/V ratio of 25%. This means that the selling price of the product should be 25% higher than the variable cost. The variable cost is given as Rs. 300, so the selling price should be Rs. 300 x 125\/100 = Rs. 400.<\/p>\n

Option A is incorrect because it is the variable cost, not the selling price. Option B is incorrect because it is half of the variable cost. Option C is incorrect because it is equal to the variable cost.<\/p>\n","protected":false},"excerpt":{"rendered":"

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