Mathematics · Relevant Costing Decision Making
A firm is considering a special order for 1,000 units. Current capacity is 10,000 units, operating at 8,000 units. The regular price is ₹100/unit. The cost structure per unit is: Materials ₹40, Labor ₹20, Variable Overheads ₹10, and Fixed Overheads ₹20. The special customer offers ₹80/unit. No additional fixed costs are incurred. Should the firm accept the order, and what is the profit impact?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Accept the order; it increases profit by ₹80,000
- 2Reject the order; it results in a loss of ₹10,000
- 3Accept the order; it increases profit by ₹10,000✓
- 4Reject the order; it results in a loss of ₹20,000
Correct answer
Accept the order; it increases profit by ₹10,000
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Mathematics?
Practice full-length Mathematics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Relevant Costing Decision Making MCQs →Want more practice questions on Relevant Costing Decision Making?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Relevant Costing Decision Making