40+ Marginal Costing MCQ | Cost Accounting MCQs (Free Resource)

41. An organization’s break-even point is 4,000 units at a sales price of Rs 50 per unit, variable cost of Rs 30 per unit, and total fixed costs of Rs 80,000. If the company sells 500 additional units, by how much will its profit increase?
(a) RS 25,000
(b) Rs 15,000
(c) Rs 12,000
(d) Rs 37,000
(e) Rs 10,000

42. Banta Ltd. manufactures product KDM for the last ten years. The company maintains a margin of safety of 36% with an overall contribution to sales ratio of 35%. If fixed cost is Rs 8.4 lakh, the profit of the company is
(a) Rs 11.400 lakh
(b) Rs 24.000 lakh
(c) Rs 4.725 lakh
(d) Rs 37.500 lakh
(e) Rs 8.644 lakh

43. A company wishes to make a profit of Rs 1,50,000. It has fixed costs of Rs 75,000 with a C/S ratio of 0.75 and a selling price of Rs 10 per unit. How many units would the company need to sell in order to achieve the required level of profit?
(a) 10,000 units
(b) 15,000 units
(c) 22,500 units
(d) 30,000 units

44. A company has a profit-volume ratio of 20%. To maintain the same contribution, by what percentage (%) must sales be increased to offset 10% reduction in selling price?
(a) 10
(b) 20
(c) 100
(d) 50
(e) 80

45. The following data is obtained from the records of Plum Ltd.:

The break-even sales of the company in rupees is

(a) Rs 1,36,000
(b) Rs 1,30,000
(c) Rs 1,00,000
(d) Rs 88,000
(e) Rs 90,000

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