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.
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Cost and Management Accounting
Related Questions in this Topic
- The following data are given : Sales ₹ 15,00,000 Fixed Cost ₹ 4,00,000 P/V Ratio 40% The Profit is:
- Which of the following method is not used for segregating semi-variable costs into fixed and variable costs ?
- Which of the following is generally used as cost unit in cement industry?
- Actual overheads for the year ending 31st March, 2017 were ₹21,000, whereas the overhead absorbed shows an over absorpti...
- Which of the following is false in respect of Bills of materials ?