A table is given below. The table shows, the number of people who took their coffee and total billing for each of the 5 weeks. On the basis of this table give answers for the next five questions given below. (Q-1).
| Week | No of Guests | Total Billed Amount |
| 1 | 250 | 13000 |
| 2 | 300 | 15900 |
| 3 | 600 | 32600 |
| 4 | 450 | 23000 |
| 5 | 260 | 8500 |
What would be the new Unit cost if variable cost increases to 75% of the sale price?
Answer & explanation
Correct answer: option 2
Unit cost refers to variable cost (also referred to as cost of goods sold).
| Week | No of Guests |
Total Billed Amount |
| 1 | 250 | 13000 |
| 2 | 300 | 15900 |
| 3 | 600 | 32600 |
| 4 | 450 | 23000 |
| 5 | 260 | 8500 |
| Total | 1860 | 93000 |
Total Variable cost= 75 % of 93000 = Rs 69750
Unit Cost = Total Variable Cost/ No of Guests= 69750/1860=Rs 37.5