"After inviting tenders for supply of raw materials, two quotations are received as follows—
Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—"
A. 22,000 units
B. 20,000 units
C. 21,000 units
D. None of the above.
Answer: Option B
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Related Questions on Costing
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A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
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B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
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X*2.20=x*2.10+2000
.10x=2000
X=20000 units
X=order quantity