MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Inventory Turnover Ratio

The highest p...

Question

The highest production cost per unit will be observed at the following level of production:

A

0-100

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

300-400

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

800-900

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

1400-1500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A 0-100
It can be calculated that the average cost decreases from 0 to 300 units, then increases for the 301st unit, then decreases till the 800th unit and then increases till the 801st unit and then decrease again.
We can see that option (a) is the correct answer.

Suggest Corrections

thumbs-up

0

Similar questions

Q. For production levels of less than 1500 units, the variation of the average cost of production per unit has the following relationship with the volume of production:

Q. The level of output and total cost of production of a product is given below:

Level of production	Total cost of production
0	20000
100	620,000
150	9,20,000
180	11,00,000

What is the per unit variable cost of production?

Q. A product can be manufactured at a total cost

C (x) = \frac{x^{2}}{100} + 100 x + 40

, where x is the number of units produced. The price at which each unit can be sold is given by

P = (200 - \frac{x}{400})

. Determine the production level x at which the profit is maximum. What is the price per unit and total profit at the level of production?

Q. If a predetermined overhead rate is not employed and the volume of production is increased over the level planned, the cost per unit would be expected to?

Q. A manufacturer has the following data regarding a product:
Fixed cost per month = Rs. 50000
Variable cost per unit = Rs. 200
Selling price per unit = Rs. 300
Production capacity = 1500 units per month
If the production is carried out at 80% of the rated capacity, then the monthly profit (in Rs.) is .

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Activity Ratios

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Inventory Turnover Ratio

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon