Following information is given for a product of a manufacturing company : Material ₹18 per unit; other variable cost ₹22 per unit; and fixed expenses ₹18 per unit. Selling price is ₹75 per unit. Company is presently prod
CS Executive · Cost and Management Accounting · PYQS · December 2016
Following information is given for a product of a manufacturing company : Material ₹18 per unit; other variable cost ₹22 per unit; and fixed expenses ₹18 per unit. Selling price is ₹75 per unit. Company is presently producing 80,000 units at 80% capacity. The company received an offer for 20,000 units from a foreign customer. The minimum price to be accepted from foreign customer, if the company wants to earn 20% on foreign sales will be —
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Management Accounting
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