Multiple choice

The total mixed cost of an organization having production of 8,000 units is Rs. 3,60,000. Calculate the variable cost per unit if fixed cost is Rs. 2,00,000.

  1. Rs. 18

  2. Rs. 22

  3. Rs. 19

  4. Rs. 20

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 It is Rs 20     Total Mixed Cost =  Fixed Cost + ( Variable Cost per unit X Number of units )         Let the variable cost per unit be y                 Rs 3,60,000 =  Rs 2,00,000 +  (  y X 8,000 )                Rs 3,60,000  =  Rs 2,00,000  + 8000 y                Rs 3,60,000 - 2,00,000 = 8000 y                   Rs  1,60,000  =  8000 y                            or 8000 y =  Rs1,60,000                              y = 1,60,000   =   Rs 20                                       8,000               So variable cost per unit is Rs 20.                                      

Keep practicing — related questions