Answer to PTP Intermediate Syllabus 2012 Jun2014 Set 1
Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 5 (iii) When order size is 4,000 units No. of order = 1 Total Cost =1 x ` 100 + 1/2 x 4,000 units x ` 20 = ` 40,100 Extra Cost = ` 40,100 - 4,000 = ` 36,100 Quantity discount received = 5% x 4,000 units x ` 200 = ` 40,000
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