A company sells its product at ₹15 per unit. In a period if it produces and sells 8,000 units, it incurs a loss of ₹5 per unit. If the volume is raised to 20,000 units, it earns a profit of ₹4 per unit. Break-even point

CS Executive · Cost and Management Accounting · PYQS · June 2017
A company sells its product at ₹15 per unit. In a period if it produces and sells 8,000 units, it incurs a loss of ₹5 per unit. If the volume is raised to 20,000 units, it earns a profit of ₹4 per unit. Break-even point in units will be :
(A) 13,000 units
(B) 12,000 units
(C) 14,000 units
(D) 10,000 units

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Marginal Costing

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic