In which year per cent unit cost in highest ? (a) 2006 (b) 2005 (c) 2009 (d) 2011

Options

A. 2006
B. 2005
C. 2009
D. 2011

Answer

B

Explanation

Suppose x units are produced each year.
So, in the year 2006,
Total revenue =1200
`rArr 12x x=1200`
`rArr x= 100`
Profit =300
`:.` Cost price `=1220-300=900`
`:.` Cost per unit `=(900)/(100)=9`
In the year 2005,
Total revenue =14000
`rArr 14xx x=1400`
x=100
Profit =100
`:.` Cost price =1400-100=1300
`:.` Cost per unit `=(1300)/(100)=13`
In the year 2009,
Total revenue =400
`rArr 8 x=400`
`rArr x= 50`
Profit =150
`:.` Cost price `=400-150=250`
`:.` Cost per unit `=(250)/(50)=5`
In the year 2011,
Total revenue =700
`rArr x=700`
`rArr x= 50`
Profit =200
`:.` Cost price `=700-200=500`
`:.` Cost perice unit `(500)/(50)=10`
Thus, per unit cost is higher in the year 2005.