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Marginal costing - plz solve

Others 3202 views 1 replies

Friends plz solve this........

A Plant produces a product in the quantity of 10,000 units at a cost of Rs. 3 per unit. If 20,000 units are produced, the cost per unit is Rs. 2.50. What is the variable cost per unit?

( Ans: Fixed cost Rs.10,000/- , Variable Cost P.U.Rs.2/-)

Replies (1)

It is Simple Equation
assume Variable cost per unit =X
assume Fixed cost per unit      =Y

Total Cost =   Variable Cost+Fixed Cost

& Toatal Cost= CPU * Units

Variable cost=V cpu* Units

Our Equation are:

1.  30000= 10000X+Y

2.  50000=20000X+Y

on solving this u will get X=Rs.2 which is Variable cost per unit.

now put x value in 1 Equation you will get Y=10000 which is Fixed Cost.


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