A plant is operating at 60% capacity. The fixed costs are ₹30,000, the variable costs are ₹1,00,000 and the sales amount to ₹1,50,000. The percentage of capacity at which the plant should operate to earn a profit of ₹40,

CS Executive · Cost and Management Accounting · PYQS · June 2017
A plant is operating at 60% capacity. The fixed costs are ₹30,000, the variable costs are ₹1,00,000 and the sales amount to ₹1,50,000. The percentage of capacity at which the plant should operate to earn a profit of ₹40,000 will be :
(A) 80%
(B) 84%
(C) 90%
(D) 94%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Marginal Costing

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