“How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.”

The correct answer is: B. 9,833 units

To calculate the number of units that must be sold to achieve a profit of Rs 11,000, we can use the following formula:

• Total revenue = Selling price per unit * Number of units sold
• Total cost = Variable cost per unit * Number of units sold + Fixed cost
• Profit = Total revenue – Total cost

We are given the following information:

• Selling price per unit = Rs 6
• Variable production cost per unit = Rs 1.20
• Variable selling cost per unit = Rs 0.40
• Fixed production cost = Rs 4
• Fixed selling cost = Rs 0.80
• Budgeted production and sales for the year = 10,000 units

We can use this information to calculate the total revenue, total cost, and profit as follows:

• Total revenue = 6 * 10,000 = Rs 60,000
• Total cost = 1.20 + 0.40 + 4 + 0.80 = Rs 2.40 * 10,000 = Rs 24,000
• Profit = 60,000 – 24,000 = Rs 36,000

Since the company wants to achieve a profit of Rs 11,000, we can calculate the number of units that must be sold as follows:

• Number of units sold = (Profit + Total cost) / Selling price per unit
• Number of units sold = (11,000 + 24,000) / 6 = 9,833 units

Therefore, the company must sell 9,833 units to achieve a profit of Rs 11,000 for the year.

Option A is incorrect because it is the number of units that must be sold to break even. Option C is incorrect because it is the number of units that must be sold to achieve a profit of Rs 10,000. Option D is incorrect because it is the number of units that must be sold to achieve a profit of Rs 12,000.