MCQ Practice

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

Subject: AccountingTopic: Accounting
A

37.50

B

38.25

C

24.00

D

35.00

Correct Answer: C