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A company has a capacity to make 4,00,000 units of a product. It has noted from market conditions that at a price of ?50 per unit, it can sell 1,00,000 units but the demand would double for each ?5 fall in the selling price. A minimum margin of 25% is required. The target cost for the company should be:

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Syllabus (with weightage)
A. Cost Management 20%
B. Strategic Cost Management Tools and Techniques 50%
C. Strategic Cost Management - Application of Statistical Techniques in Business Decisions 30%

Related Test: CMA Intermediate Exam: Cost and Management Accounting


A company has a capacity to make 4,00,000 units of a product. It has noted from market conditions that at a price of ?50 per unit, it can sell 1,00,000 units but the demand would double for each ?5 fall in the selling price. A minimum margin of 25% is required. The target cost for the company should be:






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