Selling price per unit ₹20, Trade discount 5% of selling price, cash discount 2% on sales, Material cost ₹3, Labour cost ₹4, Fixed overheads ₹22,000 and variable overheads 80% of labour cost. What would be the net profit

CS Executive · Cost and Management Accounting · PYQS · June 2019
Selling price per unit ₹20, Trade discount 5% of selling price, cash discount 2% on sales, Material cost ₹3, Labour cost ₹4, Fixed overheads ₹22,000 and variable overheads 80% of labour cost. What would be the net profit if sales are 10% above the BEP?
(A) ₹2,000
(B) ₹2,500
(C) ₹2,200
(D) ₹1,850

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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