costing Q 4(a) ca final

Dhruva Hegde (Chartered Accountant) (230 Points)

26 May 2011  

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