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Examveda

"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


This Question Belongs to Commerce >> Costing

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Comments ( 1 )

  1. Anita Saini
    Anita Saini :
    5 years ago

    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

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