Examveda
Examveda

Considering two fiscal years 2013 and 2014, an input price in 2013 and 2014 are $9 and $11 per unit respectively and input required units in 2013 to produce output in 2014 are 30000 units, then cost effect of price recovery will be

A. $60,000

B. $6,000

C. $65,000

D. $6,500

Answer: Option A

Solution(By Examveda Team)

Cost effect of price recovery = ($11 - $9) × 30000 units
= $60,000.

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