Prepmart | from the following information find out the number of units MCQ with Answer & Explanation

Q 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

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).

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