Vidyalelo
Commerce · Q359

Costing

Graduate and Post Graduate · Commerce · question 359

Q359

If required rate of return is 12% and per unit cost of units purchased is 35, then relevant opportunity cost of capital will be

A.
$6.20
B.
$7.20
C.
$4.20
Answer
D.
$5.20

Answer: Option C

Solution

Answer: Option C
Solution:
Relevant opportunity cost of capital = Cost of units purchased × Rate of return
= 4.20