Q9 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity:

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000If half of the manufacturing overhead is fixed, what would be the profit from 15,000 activity level?
 N117,500
 N60,000
 N112,500
 N40,000

 

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