Q. A facility, the installed capacity of which is 1,00,000 units, has budgeted 70% level of activity as Materials Rs 1,05,000, Wages Rs 1,40,000 Variable overheads Rs 70,000 and Fixed overheads Rs 20,000. Production is now proposed at 80,000 units. Determine Marginal cost p.u., Differential cost, and Differential cost p.u.
a. Rs 2, Rs 20,000, Rs 4.5
b. Rs 4.5, Rs 45,000, Rs 4.5
c. Rs 5, Rs 50,000, Rs 5
d. None of the above
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