A company's fixed costs are - 5,00,000, the selling price per unit is 200, and the variable cost per unit is 100. How many units must the company…

CA Intermediate · Cost and Management Accounting · MTP · September 2024
A company's fixed costs are - 5,00,000, the selling price per unit is 200, and the variable cost per unit is 100. How many units must the company sell to earn the targeted profit of 2,00,000?
(A) 2,000 units
(B) 5,000 units
(C) 10,000 units
(D) 7,000 units

Suggested Answer and Working Notes:

Correct Answer: Option (D)

7,000 units

Topics: Marginal Costing

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