The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

Answer: Option C

Cost p.u 160
75%is variable cost 120p.u
40rs p.u fixed cost (fixed cost not change when production unit increase or decrease) fixed cost is
40 * 10000 = Rs. 400000
Cal cost p.u if production increase by 25%
10000 + 25% = Rs. 12500
Total cost = variable cost + fixed cost
(12500 * 120) + 400000 = Rs. 1900000
Cost p.u = 1900000 / 12500 = Rs. 152