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Management · Q97

Management Accounting

Graduate and Post Graduate · Management · question 97

Q97

Considering two fiscal years 2013 and 2014, if selling price in 2013 and 2014 is 55 and 60 per unit respectively and actual units sold in 2013 are 25000 units, then revenue effect of price recovery will be

A.
$14,500
B.
$135,000
C.
$125,000
Answer
D.
$12,500

Answer: Option C

Solution

Answer: Option C
Solution:
Revenue effect of price recovery = (55) × 25000
= $125,000.
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