| 48. | Common Data Question 2/2 KK was skeptical that per unit variable cost might increase by 10% though the demand might remain same. What will be the expected changes in profit in such a case? |
| A. | Profit will increase by 16.67% |
| B. | Profit will increase will by 15.75% |
| C. | Profit would decrease by 15.75% |
| D. | Profit will decrease by 16.67% |
Answer – (D) Solution: Total cost when 1 lac units were sold when the variable cost has increased by
10%= Rs. 40 lac + Rs. 110 lac = Rs. 150 lac Initial Profit at normal variable cost= Rs. 200 lac – Rs. 140 lac = Rs. 60 lac New Profit= Rs. 200 lac – Rs. 150 lac = Rs. 50 lac Therefore percentage decrease in the profit =(1060)*100= 16.67%
Title : Percentage Q48
Description : 48. Common Data Question 2/2 KK was skeptical that per unit variable cost might increase by 10% though the demand might remai...
Rating : 5
