{"id":58094,"date":"2024-04-16T01:13:27","date_gmt":"2024-04-16T01:13:27","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=58094"},"modified":"2024-04-16T01:13:27","modified_gmt":"2024-04-16T01:13:27","slug":"when-sales-volume-is-rs-10000-variable-cost-is-rs-6000-and-profit-is-rs-2000-the-profit-volume-ratio-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-sales-volume-is-rs-10000-variable-cost-is-rs-6000-and-profit-is-rs-2000-the-profit-volume-ratio-will-be\/","title":{"rendered":"When sales volume is Rs. 10,000, variable cost is Rs. 6,000 and profit is Rs. 2,000, the profit-volume ratio will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;20%&#8221; option2=&#8221;33%&#8221; option3=&#8221;40%&#8221; option4=&#8221;60%&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 20%.<\/p>\n<p>The profit-volume ratio is a measure of a company&#8217;s profitability. It is calculated by dividing the company&#8217;s profit by its sales revenue. In this case, the profit-volume ratio is 20%, which means that the company makes a profit of 20% of every dollar it sells.<\/p>\n<p>The other options are incorrect because they do not represent the correct percentage of profit. Option B, 33%, is the contribution margin ratio, which is calculated by dividing the company&#8217;s contribution margin by its sales revenue. The contribution margin is the amount of revenue that is left over after the company has paid for its variable costs. Option C, 40%, is the operating profit margin, which is calculated by dividing the company&#8217;s operating profit by its sales revenue. The operating profit is the company&#8217;s profit before interest and taxes. Option D, 60%, is the net profit margin, which is calculated by dividing the company&#8217;s net profit by its sales revenue. The net profit is the company&#8217;s profit after interest and taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;20%&#8221; option2=&#8221;33%&#8221; option3=&#8221;40%&#8221; option4=&#8221;60%&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-58094","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When sales volume is Rs. 10,000, variable cost is Rs. 6,000 and profit is Rs. 2,000, the profit-volume ratio will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/when-sales-volume-is-rs-10000-variable-cost-is-rs-6000-and-profit-is-rs-2000-the-profit-volume-ratio-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When sales volume is Rs. 10,000, variable cost is Rs. 6,000 and profit is Rs. 2,000, the profit-volume ratio will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;20%&#8221; 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