99. A factory is currently working at 50% of its capacity. At this level the variable, semi-variable and fixed expenses are respectively ₹60,000, ₹20,000 and ₹10,000. If, its semi-variable expenses have a tendency to inc

CS Executive · Cost and Management Accounting · PYQS · June 2021
99. A factory is currently working at 50% of its capacity. At this level the variable, semi-variable and fixed expenses are respectively ₹60,000, ₹20,000 and ₹10,000. If, its semi-variable expenses have a tendency to increase by 10% for every 25% increase in production, the total cost at 75% of its capacity is :
(A) ₹1,30,000
(B) ₹1,35,000
(C) ₹1,27,000
(D) ₹1,22,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Marginal Costing

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