{"id":51918,"date":"2024-04-15T23:31:43","date_gmt":"2024-04-15T23:31:43","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51918"},"modified":"2024-04-15T23:31:43","modified_gmt":"2024-04-15T23:31:43","slug":"from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/","title":{"rendered":"From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;60,000 units&#8221; option2=&#8221;88,000 units&#8221; option3=&#8221;98,000 units&#8221; option4=&#8221;1,00,000 units&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: 98,000 units.<\/p>\n<p>To calculate the number of units that must be sold to earn a profit of Rs. 80,000 per year, we can use the following formula:<\/p>\n<p>Number of units = (Fixed costs + Profit) \/ (Sales price &#8211; Variable costs)<\/p>\n<p>In this case, we have the following information:<\/p>\n<ul>\n<li>Fixed costs = Rs. 5,00,000<\/li>\n<li>Profit = Rs. 80,000<\/li>\n<li>Sales price = Rs. 25 per unit<\/li>\n<li>Variable costs = Rs. 12 per unit<\/li>\n<\/ul>\n<p>Substituting these values into the formula, we get:<\/p>\n<p>Number of units = (5,00,000 + 80,000) \/ (25 &#8211; 12) = 98,000 units<\/p>\n<p>Therefore, the firm must sell 98,000 units to earn a profit of Rs. 80,000 per year.<\/p>\n<p>Option A is incorrect because it is the number of units that must be sold to break even. Option B is incorrect because it is the number of units that must be sold to earn a profit of Rs. 1,00,000 per year. Option C is incorrect because it is the number of units that must be sold to earn a profit of Rs. 1,20,000 per year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;60,000 units&#8221; option2=&#8221;88,000 units&#8221; option3=&#8221;98,000 units&#8221; option4=&#8221;1,00,000 units&#8221; 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-51918","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>From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000<\/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\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;60,000 units&#8221; option2=&#8221;88,000 units&#8221; option3=&#8221;98,000 units&#8221; option4=&#8221;1,00,000 units&#8221; correct=&#8221;option3&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:31:43+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":"From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000","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\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/","og_locale":"en_US","og_type":"article","og_title":"From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000","og_description":"[amp_mcq option1=&#8221;60,000 units&#8221; option2=&#8221;88,000 units&#8221; option3=&#8221;98,000 units&#8221; option4=&#8221;1,00,000 units&#8221; correct=&#8221;option3&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:31:43+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\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/","url":"https:\/\/exam.pscnotes.com\/mcq\/from-the-following-information-find-out-the-number-of-units-that-must-be-sold-by-the-firm-to-earn-profit-of-rs-80000-per-year-sales-price-rs-25-per-unit-variable-manufacturing-costs-rs-12-per\/","name":"From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. 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