If the total cost of producing 20,000 units of a product is ₹90,000 and if 25,000 units will be produced, then the total cost will be ₹1,05,000 and the selling price is ₹8 per unit. The break-even point will be :

CS Executive · Cost and Management Accounting · PYQS · June 2017
If the total cost of producing 20,000 units of a product is ₹90,000 and if 25,000 units will be produced, then the total cost will be ₹1,05,000 and the selling price is ₹8 per unit. The break-even point will be :
(A) 10,000 units
(B) 8,000 units
(C) 6,000 units
(D) 5,000 units

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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