What will be the sales amount required to earn a profit of Rs 4,00,000,if fixed cost is Rs 80,000, direct material is Rs 5 per unit, direct labor Rs 2 per unit,direct overhead 100% of direct labor and selling price is Rs 12 per unit.ans.Rs 12,90,000Rs 3,20,000Rs 19,20,000None of the above Previous Marked for Review Save & Finish

To answer this question, we first need to calculate the total cost per unit and then determine how many units need to be sold to achieve the desired profit.

Step 1: Calculate the total cost per unit Direct material cost per unit = Rs 5 Direct labor cost per unit = Rs 2 Direct overhead cost per unit = 100% of direct labor cost = Rs 2 Total cost per unit = Direct material cost + Direct labor cost + Direct overhead cost = Rs 5 + Rs 2 + Rs 2 = Rs 9

Step 2: Calculate the profit per unit Selling price per unit = Rs 12 Profit per unit = Selling price per unit - Total cost per unit = Rs 12 - Rs 9 = Rs 3

Step 3: Calculate the number of units needed to be sold to achieve the desired profit Desired profit = Rs 4,00,000 Number of units = Desired profit / Profit per unit = Rs 4,00,000 / Rs 3 = 1,33,333.33 units

Since we can't sell a fraction of a unit, we need to round up to the next whole number, which is 1,33,334 units.

Step 4: Calculate the sales amount required Sales amount required = Number of units * Selling price per unit = 1,33,334 units * Rs 12 = Rs 16,00,008

So, the sales amount required to earn a profit of Rs 4,00,000 is Rs 16,00,008. Therefore, the correct answer is None of the above.