Management Accounting Test Questions

Q.  Rahul has an amount of Rs 3,00,000 which is invested in a business. He desires 15% return on his fund. It is known from the past cost data analysis that fixed costs are Rs 1,50,000 per annum and variable costs of operation are 60% of sales. Determine sales volume to get 15% return. Also tell shut down point of the business, if he would spend Rs 50,000 even if business has to be closed.

a. Rs 2,50,000 and Rs 4,00,000
b. Rs 2,50,000 and Rs 4,87,500
c. Rs 4,87,500 and Rs 2,50,000
d. Rs 4,00,000 and Rs 2,00,000


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