Ramya Ltd. furnishes the following information: Production 10,000 units, Sales 10,000 units, Selling price ₹12 per unit, Variable cost ₹6 per unit, Fixed costs ₹40,000 per annum (normal capacity of 10,000 units) Profit/L

CS Executive · Cost and Management Accounting · PYQS · June 2017
Ramya Ltd. furnishes the following information: Production 10,000 units, Sales 10,000 units, Selling price ₹12 per unit, Variable cost ₹6 per unit, Fixed costs ₹40,000 per annum (normal capacity of 10,000 units) Profit/Loss under marginal costing method will be :
(A) ₹10,000
(B) ₹30,000
(C) ₹20,000
(D) ₹25,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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