Sunny Ltd. makes product-A which sells at ₹80 per unit. Total fixed costs are ₹28,000 and marginal cost ₹42 per unit. The sales level (in units) that will provide a profit of ₹10,000 is —

CS Executive · Cost and Management Accounting · PYQS · June 2015
Sunny Ltd. makes product-A which sells at ₹80 per unit. Total fixed costs are ₹28,000 and marginal cost ₹42 per unit. The sales level (in units) that will provide a profit of ₹10,000 is —
(A) 1,200 Units
(B) 1,500 Units
(C) 1,250 Units
(D) 1,000 Units.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Marginal Costing

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