In a purely competitive market, 10,000 pocket transistors can be manufactured and sold and certain profit is generated. It is estimated that 2,000 pocket transistors need to be manufactured and sold in a monopoly market

CS Executive · Cost and Management Accounting · PYQS · June 2017
In a purely competitive market, 10,000 pocket transistors can be manufactured and sold and certain profit is generated. It is estimated that 2,000 pocket transistors need to be manufactured and sold in a monopoly market to earn the same profit. Profit under both the conditions is targeted at ₹2,00,000. The variable cost per transistor is ₹100 and the total fixed costs are ₹37,000. You are required to find out unit selling price per transistor under competitive condition.
(A) ₹125.70
(B) ₹123.70
(C) ₹128.70
(D) ₹228.70

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost and Management Accounting

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