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Marginal Costing

In this example, I couldn't understand the last point (which has been marked) sir. Can you explain how the sales below 30,000 units will yield higher profits in option (i) and sales above 30,000 units will yield higher profits in option (ii) by looking the graph sir?

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20200719_070907.jpg


Viveka R

Viveka R

CA Inter

290

19-Jul-20 07:14

64

Answers (2)

You can see that at 30,000 units both lines intersect. i.e. profits are equal. After that point the line which is above will give higher profit.


Suraj Lakhotia

Suraj Lakhotia

Admin

20-Jul-20 12:55

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