The cost per unit of a product manufactured in a factory amounts to ₹210 (80% variable) when the production is 15,000 units. If production increases by 20%, the per unit cost of production will be :

CS Executive · Cost and Management Accounting · PYQS · December 2021
The cost per unit of a product manufactured in a factory amounts to ₹210 (80% variable) when the production is 15,000 units. If production increases by 20%, the per unit cost of production will be :
(A) ₹243.60
(B) ₹203
(C) ₹201.60
(D) ₹176.40

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Costing

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