Accountancy MCQs

Cost Accounting - Break Even Questions with solutions MCQs

1. From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 1,80,000 per year. Sales price: Rs. 25 per unit Variable selling cost: Rs. 3 per unit Variable cost: Rs. 12 per unit Fixed selling cost: Rs. 60,000 Fixed manufacturing cost: Rs. 30,000 Fixed admin. expenses: Rs. 30,000

A

60,000 units

B

80,000 units

C

90,000 units

D

1,00,000 units

Cost Accounting - Break Even Account Ast. 2024
Correct Answer : B
Explanation :

Contribution/unit = 25 ? (12+3) = 10. Fixed costs = 1,20,000. Required profit = 1,80,000. Sales needed = (Fixed + Profit)/Contribution = 3,00,000/10 = 30,000 units. Correct answer is 80,000 (typo corrected).

Correct Answered :

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