An electric scooter manufacturing company wants to increase its profits by Rs. 20 lacs. If the…
The additional contribution required is Rs. 20,00,000. Dividing by the contribution per unit gives 20,00,000 / 3,200 = 625 additional units, so their contribution supplies…
Choose your answer
An electric scooter manufacturing company wants to increase its profits by Rs. 20 lacs. If the contribution margin per unit is Rs. 3,200/-, then how many additional units must be sold to achieve this profit increase in the ensuing financial year?
Answer and explanation
Correct answer B
The additional contribution required is Rs. 20,00,000. Dividing by the contribution per unit gives 20,00,000 / 3,200 = 625 additional units, so their contribution supplies the required profit increase.
Practice for these exams
-
Karnataka SET (KSET)