Due to sudden rise in demand of the product, the sales of Arrow Ltd. for current year enhanced to 3 times the average of last 4 years. The Break…
CA Intermediate · Cost and Management Accounting · MTP · January 2025
Due to sudden rise in demand of the product, the sales of Arrow Ltd. for current year enhanced to 3 times the average of last 4 years. The Break even point and the variable cost of the company for the current year is 1,17,00,000 and 93,60,000 respectively. The sales data relating to past years is given below: Year Sales (₹) Year 1 (latest) 62,00,000 Year 2 50,00,000 Year 3 52,00,000 Year 4 44,00,000 Year 5 66,00,000 CALCULATE the fixed cost to the company for the current year.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
46,80,000
Topics: Marginal Costing
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