ExamVeda
Login
Home

If Fixed cost = Rs 2 50 000 Variable cost =...

This question belongs to Commerce Accounting
Accounting
?

If Fixed cost = Rs. 2,50,000;
Variable cost = Rs. 10 per unit
Selling price = Rs. 15 per unit and
Production level = 75,000 units
Calculate profit earned by using marginal costing technique

Answer & Solution
Correct Answer: Option A
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

1 Comment
Abdul Muqeet
Abdul Muqeet 3 years ago
FORMAT OF FINDING PROFIT WITH THE HELP OF MARGINAL COST TECHNIQUE IS:-
SALES (75,000 * 15) = 11,25,000
LESS: VARIABLE COST (75,000 * 10) = (750,000)
CONTRIBUTION MARGING = 375,000
LESS: FIXED COST = (250,000)
NET PROFIT = 125,000

SO, THE ANSWER OF A IS RIGHT.
Keep Learning

Related Questions on Accounting

Accounting provides information on
A. Cost and income for managers B. Company's tax liability for a particular year C. Financial conditions of an institutions D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
Patents, Copyrights and Trademarks are
A. Current assets B. Fixed assets C. Intangible assets D. Investments
More Related Questions on Accounting