Q105
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
AnswerB.
$6,000
C.
$65,000
D.
$6,500
Answer: Option A
Solution
Answer: Option A
Solution:
Cost effect of price recovery = (9) × 30000 units = $60,000.