A company sells its product at ₹15 per unit. In a period, it produces and sells 8,000 units and incurs a loss of ₹5 per unit. If the sales volume were to be raised to 20,000 units, it could earn a profit of ₹4 per unit.
CS Executive · Cost and Management Accounting · PYQS · December 2015
A company sells its product at ₹15 per unit. In a period, it produces and sells 8,000 units and incurs a loss of ₹5 per unit. If the sales volume were to be raised to 20,000 units, it could earn a profit of ₹4 per unit. Break-even point (in units) will be —
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Marginal Costing
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