Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

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?

Options:

35

37.5

40.25

40

Correct Answer:

37.5

Explanation:

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