CMA Intermediate · Cost Accounting · Batch Costing
A batch of 1,000 units has total cost of Rs 2,40,000. The firm sells the whole batch at a profit of 25% on selling price. What is the selling price per unit?
The selling price is Rs 320 per unit. Cost per unit is Rs 240, which is 75% of the price when profit is 25% on sales, so price equals 240 divided by 0.75.
- ARs 300
- BRs 320Correct
- CRs 275
- DRs 240
Explanation
Cost per unit = 240. Profit is 25% of selling price, so cost is 75% of price. Price = 240/0.75 = Rs 320. Rs 300 wrongly adds 25% to cost.
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