{"id":54355,"date":"2024-04-16T00:08:46","date_gmt":"2024-04-16T00:08:46","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54355"},"modified":"2024-04-16T00:08:46","modified_gmt":"2024-04-16T00:08:46","slug":"how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/","title":{"rendered":"&#8220;How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price &#8211; Rs 6 per unit Variable production cost &#8211; Rs 1.20 per unit Variable selling cost &#8211; Rs 0.40 per unit Fixed production cost &#8211; Rs 4 per unit Fixed selling cost &#8211; Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.&#8221;"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;2,500 units&#8221; option2=&#8221;9,833 units&#8221; option3=&#8221;10,625 units&#8221; option4=&#8221;13,409 units&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. 9,833 units<\/strong><\/p>\n<p>To calculate the number of units that must be sold to achieve a profit of Rs 11,000, we can use the following formula:<\/p>\n<ul>\n<li>Total revenue = Selling price per unit * Number of units sold<\/li>\n<li>Total cost = Variable cost per unit * Number of units sold + Fixed cost<\/li>\n<li>Profit = Total revenue &#8211; Total cost<\/li>\n<\/ul>\n<p>We are given the following information:<\/p>\n<ul>\n<li>Selling price per unit = Rs 6<\/li>\n<li>Variable production cost per unit = Rs 1.20<\/li>\n<li>Variable selling cost per unit = Rs 0.40<\/li>\n<li>Fixed production cost = Rs 4<\/li>\n<li>Fixed selling cost = Rs 0.80<\/li>\n<li>Budgeted production and sales for the year = 10,000 units<\/li>\n<\/ul>\n<p>We can use this information to calculate the total revenue, total cost, and profit as follows:<\/p>\n<ul>\n<li>Total revenue = 6 * 10,000 = Rs 60,000<\/li>\n<li>Total cost = 1.20 + 0.40 + 4 + 0.80 = Rs 2.40 * 10,000 = Rs 24,000<\/li>\n<li>Profit = 60,000 &#8211; 24,000 = Rs 36,000<\/li>\n<\/ul>\n<p>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:<\/p>\n<ul>\n<li>Number of units sold = (Profit + Total cost) \/ Selling price per unit<\/li>\n<li>Number of units sold = (11,000 + 24,000) \/ 6 = 9,833 units<\/li>\n<\/ul>\n<p>Therefore, the company must sell 9,833 units to achieve a profit of Rs 11,000 for the year.<\/p>\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;2,500 units&#8221; option2=&#8221;9,833 units&#8221; option3=&#8221;10,625 units&#8221; option4=&#8221;13,409 units&#8221; correct=&#8221;option2&#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-54355","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>&quot;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.&quot;<\/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\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"&quot;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.&quot;\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;2,500 units&#8221; option2=&#8221;9,833 units&#8221; option3=&#8221;10,625 units&#8221; option4=&#8221;13,409 units&#8221; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:08:46+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":"\"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.\"","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\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/","og_locale":"en_US","og_type":"article","og_title":"\"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.\"","og_description":"[amp_mcq option1=&#8221;2,500 units&#8221; option2=&#8221;9,833 units&#8221; option3=&#8221;10,625 units&#8221; option4=&#8221;13,409 units&#8221; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T00:08:46+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\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/","url":"https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/","name":"\"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.\"","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T00:08:46+00:00","dateModified":"2024-04-16T00:08:46+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/how-many-units-must-be-sold-if-company-wants-to-achieve-a-profit-of-rs-11000-for-the-year-selling-price-rs-6-per-unit-variable-production-cost-rs-1-20-per-unit-variable-selling-cost-rs-0-40\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Costing","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/costing\/"},{"@type":"ListItem","position":3,"name":"&#8220;How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price &#8211; Rs 6 per unit Variable production cost &#8211; Rs 1.20 per unit Variable selling cost &#8211; Rs 0.40 per unit Fixed production cost &#8211; Rs 4 per unit Fixed selling cost &#8211; Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.&#8221;"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/54355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=54355"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/54355\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=54355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=54355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=54355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}