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Question 1 : The cost information supplied by the cost accountant is as follows: Sales 2 0 , 0 0 units @ Rs . 1

Question1: The cost information supplied by the cost accountant is as follows:
Sales 20,00 units @ Rs.10 per unit Rs.2,00,000
Variable cost Rs.6 per unit Rs.1,20,000
Contribution Rs.80,000
Fixed Cost Rs.30,000
Profit Rs.50,000
Calculate the (a) new sales quantity and (b) new selling price to earn the same profit if
(1) Variable cost increases by Rs.2 per unit
(2) Fixed cost increase by Rs.10,000
(3) Variable cost increase by Re.1 per unit and fixed cost reduces by Rs.10,000
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