The budgeted profit statement for a company, with all figures expressed as percentages of revenue, is as follows:

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% 100 Revenue Variable costs 30 22 48 Fixed costs Profit After the formulation of the above budget it has now been realised that the sales volume will only be 60% of that originally forecast. The revised profit, expressed as a percentage of the revised revenue will be: A 20% B 33-3% 60% D 80% % 100 Revenue Variable costs 30 22 48 Fixed costs Profit After the formulation of the above budget it has now been realised that the sales volume will only be 60% of that originally forecast. The revised profit, expressed as a percentage of the revised revenue will be: A 20% B 33-3% 60% D 80%

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Variable costs change exactly in the same proportion in which the sal... View the full answer