Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

Calculate the net income from the following data.

Sales 2,00,000

Variable cost Ratio = 90%

Variable cost ₹1,80,000

Fixed cost ₹20,000

Options:

20,000

0

10,000

1,60,000

Correct Answer:

0

Explanation:

The correct answer is option (2) - 0

Net income= Sales- variable cost- fixed cost

                  = 2,00,000 - 1,80,000 - 20,000

                  = 0