Question

From the following information find amount of profit earned during the year using Marginal Costing technique. Fixed Cost = Rs. 2,50,000/- , Variable Cost = Rs. 10 per unit , Output level = 75,000, Selling price = Rs. 15 per unit.

Answer 1

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cost=250000+75000

=325000

selling price=15×75000

=1125000

profit=selling price - cost

=1125000-325000

=800000

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