[amp_mcq option1=”Rs. 1,00,000″ option2=”Rs. 75,000″ option3=”Rs. 55,000″ option4=”Rs. 20,000″ correct=”option1″]<\/p>\n
The correct answer is A. Rs. 1,00,000.<\/p>\n
The margin of safety is the amount of sales that a company can lose before it starts to incur a loss. It is calculated by subtracting the break-even point from the sales. The break-even point is the point at which a company’s revenue equals its costs.<\/p>\n
In this case, the margin of safety is Rs. 80,000. This means that the company can lose Rs. 80,000 in sales before it starts to incur a loss. The profit is Rs. 20,000. This means that the company is making a profit of Rs. 20,000 on every Rs. 3,00,000 in sales.<\/p>\n
To calculate the fixed cost, we can use the following formula:<\/p>\n
Fixed cost = (Sales – Variable cost – Profit) \/ Margin of safety<\/p>\n
In this case, the fixed cost is:<\/p>\n
Fixed cost = (3,00,000 – 20,000 – 80,000) \/ 80,000 = Rs. 1,00,000<\/p>\n
Therefore, the amount of fixed cost is Rs. 1,00,000.<\/p>\n
Option B is incorrect because the fixed cost cannot be less than the profit.<\/p>\n
Option C is incorrect because the fixed cost cannot be less than the variable cost.<\/p>\n
Option D is incorrect because the fixed cost cannot be less than the break-even point.<\/p>\n","protected":false},"excerpt":{"rendered":"
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