- August 9, 2020 at 12:20 pm #579725
Sir why is my answer coming different when I am doing it on per unit basis I.e,
11.259 whereas the answer is 3.22August 9, 2020 at 3:01 pm #579738
I have no idea what you have done wrong.
The BPP answer of 3.22 per unit is correct and there is no other way of doing it.August 11, 2020 at 10:44 am #580099
Sir I have just taken all the cost on per unit basis.i.e
Vc per unit=2.3+1.8+1.2=5.3
Fixed costs p.u=3000÷2000+3500÷5000+4000÷7000
Variable selling cost p.u=0.5+0.4+0.4=1.3
Fixed selling costs p.u=1500÷2000+1600÷5000+1600÷7000
=5.3+2.77+1.3+1.3+0.59=11.26August 11, 2020 at 10:51 am #580103
But what you are doing does not make sense. The costs are the costs per unit each year and the total cost each year is the number of units produced each year multiplied by whatever the cost per unit was in that year.August 11, 2020 at 10:13 pm #580177
Are they not the same thing?If u can explain it abit more it would be great because it’s still not very clear to me.Sorry to trouble you again.August 12, 2020 at 9:56 am #580234
Suppose last year the cost per unit was $5 and this year the cost per unit is $6.
That certainly does not mean that the total cost per unit is $11, which is effectively what you are doing!!!August 12, 2020 at 11:24 am #580250
Got it now
Thank you so much sir.your explanations are justifying .August 12, 2020 at 1:34 pm #580265
You are welcome 🙂
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