Q.

Fixed cost Rs. 80,000; Variable cost Rs. 2 per unit; Selling price_Rs. 10 per unit; turnover required for a profit target of Rs. 60,000.

A. Rs. 1,75,000.
B. Rs. 1,17,400.
C. Rs. 1.57,000.
D. Rs. 1,86,667.
Answer» A. Rs. 1,75,000.
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Discussion

Habib Ur Rehman
10 months ago

No of unit to be sale = (Fixed cost + Target profit)/(Selling price - Cost price)
(80000 + 60000)/(10 - 2) = 17500
Turnover = Selling price x unit
= 17500 x 10 = Rs 175000
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