40+ Marginal Costing MCQ | Cost Accounting MCQs (Free Resource)

31. The total cost of manufacturing 3,600 units of Product X is Rs 81,000 which includes a variable cost per unit of Rs 15.00. If the company desires to produce 3,850 units, then the total cost would be
(a) Rs 86,625
(b) Rs 84,750
(c) Rs 57,750
(d) Rs 52,250
(e) Rs 50,700

32. P Limited incurs fixed costs of Rs 1,00,000 Per annum. The company manufactures a single product and sells it for Rs 50 per unit. If the contribution to sales ratio is 40%, the break-even sales in units are
(a) 5,000
(b) 6,000
(c) 6,500
(d) 7,000
(e) 7,500

33. A company manufactures a single product with a variable cost per unit of Rs 22. The contribution to sales ratio is 45%. Monthly fixed costs are Rs 1,98,000. What is the breakeven point in units?
(a) 4,950
(b) 9,000
(c) 11,000
(d) 20,000

34. A Ltd. manufactures and sells product ‘B’. The sale price per unit of the product is Rs 35. The company will incur a loss of Rs 5.00 per unit if it sells 4,000 units; but if the volume is raised to 12,000 units, the company will make a profit of ` 4.50 per unit. The break-even point in units is
(a) 5,700
(b) 6,612
(c) 5,250
(d) 6,162

35. The profit-volume ratio and margin of safety ratio are 30% and 40% respectively. If the total sales is Rs 3,00,000, the profit of the firm is
(a) Rs 54,000
(b) Rs 48,000
(c) Rs 36,000
(d) Rs 30,000
(e) Rs 25,000

36. A company manufactures a single product which it sells for Rs 15 per unit. The product has a contribution to sales ratio of 40%. The company’s weekly break-even point is sales of Rs 18,000. What would be the profit in a week when 1,500 units are sold?
(a) Rs 900
(b) Rs 1,800
(c) Rs 2,700
(d) Rs 4,500

37. An organization manufactures a single product. The total cost of making 4,000 units is Rs 20,000 and the total cost of making 20,000 units is Rs 40,000. Within this range of activity the total fixed costs remain unchanged. What is the variable cost per unit of the product?
(a) Rs 0.08
(b) Rs 1.20
(c) Rs 1.25
(d) Rs 2.00

38. 5,400 units of a company’s single product were sold for total revenue of Rs 1,40,400. Fixed costs in the period were Rs and net profit was Rs 11,880. What was the contribution per unit?
(a) Rs 7.30
(b) Rs 9.50
(c) RS 16.50
(d) Rs 18.70

39. Sales are Rs 3,20,000 fixed costs are Rs 80,000 and variable costs are Rs 1,20,000. What is the safety margin?
(a) Rs 18,900
(b) Rs 20,000
(c) Rs 1,92,000
(d) Rs 1,28,000
(e) Rs 1,31,000

40. An organization manufactures a single product that has a variable cost of Rs 36 per unit. The organization’s total weekly fixed costs are ` 81,000 and it has a contribution to sales ratio of 40%. This week it plans to manufacture and sell 5,000 units. What is the organization’s margin of safety in units?
(a) 1,625
(b) 2,750
(c) 3,375
(d) 3,500

Answer: 31)Rs 84,750 32)5,000 33)11,000 34)6,162 35)Rs 36,000 36)Rs 1,800 37)Rs 1.25 38)Rs 9.50 39)Rs 1,92,000 40)1,625

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