Manoj Ltd. manufactures three products P, Q and R. The unit selling price of these products are ₹100, ₹160 and ₹75 respectively. The corresponding unit variable costs are ₹50, ₹80 and ₹30. The proportions (quantity-wise)

CS Executive · Cost and Management Accounting · PYQS · December 2015
Manoj Ltd. manufactures three products P, Q and R. The unit selling price of these products are ₹100, ₹160 and ₹75 respectively. The corresponding unit variable costs are ₹50, ₹80 and ₹30. The proportions (quantity-wise) in which these products are manufactured and sold are 20%, 30% and 50% respectively. Total fixed costs are ₹14,80,000. Overall break-even quantity is —
(A) 26,195 Units
(B) 27,195 Units
(C) 27,165 Units
(D) 28,165 Units.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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