The fixed expenses are ₹4,000 and break-even point is ₹10,000. New break-even point, if selling price is reduced by 20% is —

CS Executive · Cost and Management Accounting · PYQS · December 2015
The fixed expenses are ₹4,000 and break-even point is ₹10,000. New break-even point, if selling price is reduced by 20% is —
(A) ₹14,000
(B) ₹15,000
(C) ₹16,000
(D) ₹17,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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