Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unit and variable cost is Rs 6 per unit. Determine profit using technique of marginal costing
Answer (1)
8th Dec, 2020
Hello aspirant,
Here is the answer to your question.
Marginal costing shows that the meaning of profit gets changed, but here profit means contribution.
Hence, Selling Price= 10 per unit-Variable Cost=6 per unit contribution which is equal to 4 per unit total contribution= 4 per unit * 100000 units= 4 lakhs
So, final profit= 4 lakhs - 2 lakhs (Fixed Cost= 2 lakhs.
Hope, it helps you.
1 like
Comments (0)
Related Questions
Trending Articles/News
