{"id":43370,"date":"2024-04-15T21:28:28","date_gmt":"2024-04-15T21:28:28","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43370"},"modified":"2024-04-15T21:28:28","modified_gmt":"2024-04-15T21:28:28","slug":"the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/","title":{"rendered":"The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs 145&#8243; option2=&#8221;Rs 150&#8243; option3=&#8221;Rs 152&#8243; option4=&#8221;Rs 140&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. Rs 152<\/p>\n<p>The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. This means that the variable cost per unit is Rs 120 (75% of Rs 160) and the fixed cost is Rs 40 (100% &#8211; 75% = 25%).<\/p>\n<p>When production increases by 25%, the new production level will be 12,500 units. The new variable cost will be Rs 150,000 (12,500 units x Rs 120 per unit). The new fixed cost will remain at Rs 40,000.<\/p>\n<p>The new cost per unit will be Rs 152 (150,000 + 40,000) \/ 12,500 units.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Rs 145. This is incorrect because the cost per unit is not expected to decrease when production increases.<\/li>\n<li>Option B: Rs 150. This is incorrect because the cost per unit is not expected to remain the same when production increases.<\/li>\n<li>Option C: Rs 152. This is the correct answer because the cost per unit is expected to increase by 2% when production increases by 25%.<\/li>\n<li>Option D: Rs 140. This is incorrect because the cost per unit is not expected to decrease by 2% when production increases by 25%.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs 145&#8243; option2=&#8221;Rs 150&#8243; option3=&#8221;Rs 152&#8243; option4=&#8221;Rs 140&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-43370","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs 145&#8243; option2=&#8221;Rs 150&#8243; option3=&#8221;Rs 152&#8243; option4=&#8221;Rs 140&#8243; correct=&#8221;option3&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:28:28+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/","og_locale":"en_US","og_type":"article","og_title":"The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.","og_description":"[amp_mcq option1=&#8221;Rs 145&#8243; option2=&#8221;Rs 150&#8243; option3=&#8221;Rs 152&#8243; option4=&#8221;Rs 140&#8243; correct=&#8221;option3&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:28:28+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-cost-per-unit-of-a-product-manufactured-in-a-factory-amounts-to-rs-160-75-variable-when-the-production-is-10000-units-when-production-increases-by-25-the-cost-of-production-will-be-rs-per-uni\/","name":"The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. 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