Mathematics · Cost Accounting
A firm sells a product at Rs. 500 per unit. Variable cost is Rs. 320 per unit. Fixed costs are Rs. 9,00,000. If sales increase from 10,000 to 12,000 units, what will be the impact on profit?
- 1Increase by Rs. 90,000
- 2Increase by Rs. 1,80,000
- 3Increase by Rs. 2,40,000✓
- 4Increase by Rs. 3,60,000
Correct answer
Increase by Rs. 2,40,000
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