"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
A. 2,500 units
B. 9,833 units
C. 10,625 units
D. 13,409 units
Answer: Option D
Join The Discussion
Comments ( 1 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
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 _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
As per above Qus
Fc=48000
Profit 11000
Contribution =fc+profit
48000+11000=59000
cont. p.u =4.40
Sales units= 59000/4.40=13409