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Commerce · Q264

Costing

Graduate and Post Graduate · Commerce · question 264

Q264

"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? 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. "

A.
8,788 units
B.
11,600 units
C.
11,885 units
Answer
D.
12,397 units

Answer: Option C

Solution

Answer: Option C
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