A factory engaged in manufacturing LED Lamps is working at 60% capacity and produces 1,20,000 LED Lamps per annum. The present cost-break-up and selling price for one LED Lamp is as under : ₹ Direct Material 10 Direct La

CS Executive · Cost and Management Accounting · PYQS · December 2018
A factory engaged in manufacturing LED Lamps is working at 60% capacity and produces 1,20,000 LED Lamps per annum. The present cost-break-up and selling price for one LED Lamp is as under : ₹ Direct Material 10 Direct Labour 16 Overheads 20 (60% fixed) Selling Price 60 If the factory operates its 90% capacity, then profit will be :
(A) ₹16,80,000
(B) ₹32,40,000
(C) ₹25,20,000
(D) ₹67,20,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Marginal Costing

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