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How many units must be sold if company wants to achieve...

This question belongs to Commerce Costing
Costing
?

"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."

Answer & Solution
Correct Answer: Option D
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1 Comment
Anita Saini
Anita Saini 7 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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