A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

A. 37.50
B. 38.25
C. 24.00
D. 35.00

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Accounting Mcqs

Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. accounting mcqs for accountant. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant.

Principles of Accounting, Accounting Equation, Analyzing & Classifying Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments.

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One Comment to “A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be”

Warraich says:

18/04/2021 at 5:31 AM

ActualProduction= 150,000*0.8=120,000
Variable Cost= 120,000*14= 1680,000
Total Cost= 1680,000+800,000= 2480,000
Desired Sales so that Profit of 400,000 can be generated = 2480,000+400,000= 2880,000
Per Unit Sale Price= 2880,000/120,000
24

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