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costing Q 4(a) ca final

Final 774 views 6 replies

hi i have arrived answer for Q 4(a) of costing paper 2011 like this, is it right? 

profit=106000

fixed cost=74000

so contribution =180000

total no units for monopoly market=1200

so contribution per unit=150

so c.p.u = as high as 3/4th its variable cost that is  175% of variable cost

so 150/175*100=85.71 per  unit being variable cost

so target selling price per unit will be 150+85.71=235.71 p.u for monopoly market.

please comment on this who knows the right answer if any other than this

thank you

Replies (6)

You are right. Me too got the same answer in the examination.

your answer is wrong,since contribution is 3/4th of its variable cost.

that means 3/4 th = 150

variable cost =150*4/3 = 200

selling price = 350

Dhruva Hegde, you r right
 

No, shiva shankar answer is correct'

SP for Monopoly- 350

and for PC-230

shiva shankar's answer is correct

Dhruva Hegde, your answer is right..


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