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Estimate amount of profit if Sales is 10,000 units Fixed cost is Rs 50,000,Variable cost per unit is Rs 12 and selling price per unit is Rs 20. ans.None of the aboveRs 12,000Rs 5,000Rs 30,000 Previous Marked for Review Next

Question

Estimate amount of profit if Sales is 10,000 units Fixed cost is Rs 50,000,Variable cost per unit is Rs 12 and selling price per unit is Rs 20. ans.None of the aboveRs 12,000Rs 5,000Rs 30,000 Previous Marked for Review Next

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Solution

To calculate the profit, we first need to calculate the total variable cost and then subtract it from the total sales revenue.

Step 1: Calculate the total variable cost Variable cost per unit is Rs 12. If you sell 10,000 units, then the total variable cost is 12 * 10,000 = Rs 120,000.

Step 2: Calculate the total sales revenue Selling price per unit is Rs 20. If you sell 10,000 units, then the total sales revenue is 20 * 10,000 = Rs 200,000.

Step 3: Calculate the total cost The total cost is the sum of the fixed cost and the total variable cost. So, the total cost is 50,000 (fixed cost) + 120,000 (total variable cost) = Rs 170,000.

Step 4: Calculate the profit The profit is the total sales revenue minus the total cost. So, the profit is 200,000 (total sales revenue) - 170,000 (total cost) = Rs 30,000.

So, the estimated profit is Rs 30,000.

This problem has been solved

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