Hello aspirant,
Here is the answer to your question.
Marginal costing shows that the meaning of profit gets changed, but here profit means contribution.
Hence, Selling Price= 10 per unit-Variable Cost=6 per unit contribution which is equal to 4 per unit total contribution= 4 per unit * 100000 units= 4 lakhs
So, final profit= 4 lakhs - 2 lakhs (Fixed Cost= 2 lakhs.
Hope, it helps you.
Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will not change in gross profit ratio?
Option 1: Goods costing Rs. 1,50,000 sold for Rs. 2,00,000.
Option 2: Goods costing Rs. 3,40,000 sold for Rs. 4,00,000.
Option 3: Revenue from Operations Rs. 2,00,000.
Option 4: None of the above
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