Aman Ltd. sells its products at ₹16 per unit. In a period, if it produces and sells 20,000 units, it incurs a loss of ₹2 per unit. If the volume is doubled, it earns a profit of ₹2.20 per unit. The amount of fixed cost a

CS Executive · Cost and Management Accounting · PYQS · June 2016
Aman Ltd. sells its products at ₹16 per unit. In a period, if it produces and sells 20,000 units, it incurs a loss of ₹2 per unit. If the volume is doubled, it earns a profit of ₹2.20 per unit. The amount of fixed cost and break-even point (in units) will be —
(A) ₹1,68,000 and 26,250 units
(B) ₹8,000 and 53,333 units
(C) ₹1,60,000 and 25,000 units
(D) ₹1,70,000 and 42,500 units.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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