Directions for Questions:
Answer the following questions based on the information given below: The following table shows the break-up of actual costs incurred by a company in last five years (year $2012$ to year $2016)$ to produce a particular product:
The production capacity of the company is $2000$ units. The selling price for the year $2016$ was $\text{Rs.}125$ per unit. Some costs change almost in direct proportion to the change in volume of production, while others do not follow any obvious pattern of change with respect to the volume of production and hence are considered fixed. Using the information provided for the year $2016$ as the basis for projecting the figures for the year $2017$, answer the following questions:
| |
Year 2012 |
Year 2013 |
Year 2014 |
Year 2015 |
Year 2016 |
| Volume of production and sale |
1000 |
900 |
1100 |
1200 |
1300 |
| Cost (Rs.) |
|
|
|
|
|
| Input Material |
50,000 |
45,100 |
55,200 |
59, 900 |
60,000 |
| Manpower |
20,000 |
18,000 |
22,100 |
24, 150 |
24,000 |
| Variables |
2,000 |
2,200 |
1,800 |
1,600 |
1,400 |
| Rent |
1,000 |
1,000 |
1,100 |
1,100 |
1,200 |
| Taxes |
400 |
400 |
400 |
400 |
400 |
| Maintenance |
800 |
820 |
780 |
790 |
800 |
| Operating Cost |
30,000 |
27,000 |
33,500 |
36,020 |
36,000 |
| Marketing |
5,750 |
5,800 |
5,800 |
5,750 |
5,800 |
What is the approximate cost per unit in rupees, if the company produces and sells $1400$ units in the year $2017$?
- $104$
- $107$
- $110$
- $115$