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48.
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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?
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A.
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Profit
will increase by 16.67%
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B.
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Profit
will increase will by 15.75%
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C.
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Profit
would decrease by 15.75%
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D.
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Profit
will decrease by 16.67%
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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...
Rating : 5
