The cost accountant of M Ltd. has ascertained the selling price of a product is ₹20 per unit. Variable cost is ₹15 per unit and break-even point is 21,600 units. Management has decided to treat 12,000 units of B.E.P. bec

CS Executive · Cost and Management Accounting · PYQS · June 2017
The cost accountant of M Ltd. has ascertained the selling price of a product is ₹20 per unit. Variable cost is ₹15 per unit and break-even point is 21,600 units. Management has decided to treat 12,000 units of B.E.P. because production department cannot produce more than this at the moment. The selling price for 12,000 units B.E.P. will be :
(A) ₹20 per unit
(B) ₹24 per unit
(C) ₹26 per unit
(D) ₹28 per unit

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Marginal Costing

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