Following information is related to Product-A: In 2015, variable cost was ₹200 per unit and fixed cost ₹40 per unit. Production was 1,20,000 units. It is expected that production in 2016 will increase to 1,60,000 units.

CS Executive · Cost and Management Accounting · PYQS · December 2016
Following information is related to Product-A: In 2015, variable cost was ₹200 per unit and fixed cost ₹40 per unit. Production was 1,20,000 units. It is expected that production in 2016 will increase to 1,60,000 units. The variable cost will increase by 25% and fixed cost by 10% in 2016. The amount of fixed cost in 2016 will be —
(A) ₹52,80,000
(B) ₹70,40,000
(C) ₹64,00,000
(D) ₹48,00,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Management Accounting

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