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Question
The following table shows the break-up of actual costs incurred by a company XYZ in the last five years (years 2002-2006) to produce a particular product.
The production capacity of the company is 2000 units. The selling price for the year 2006 was Rs 125/unit. Some costs change almost in direct proportion to the change in volume of production, while others do not follow any obvious pattern of change with respect to the volume of production an hence are considered fixed. Using the information provided for the year 2006 as the basis for projecting the figures for the year 2007, answer the following questions.
What is the approximate cost per unit in rupees, if the company produces and sells 1400 units in the year 2007?
The following table shows the break-up of actual costs incurred by a company XYZ in the last five years (years 2002-2006) to produce a particular product.
The production capacity of the company is 2000 units. The selling price for the year 2006 was Rs 125/unit. Some costs change almost in direct proportion to the change in volume of production, while others do not follow any obvious pattern of change with respect to the volume of production an hence are considered fixed. Using the information provided for the year 2006 as the basis for projecting the figures for the year 2007, answer the following questions.
What is the approximate cost per unit in rupees, if the company produces and sells 1400 units in the year 2007?
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Solution
The correct option is B 107
Option (B) is the correct answer. Check the video for the approach.
Option (B) is the correct answer. Check the video for the approach.
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