A product is sold at ₹150 per unit and its variable cost is ₹70 per unit. The fixed expenses of the business are ₹8,000 per year. Break-even point (in units) is —

CS Executive · Cost and Management Accounting · PYQS · June 2015
A product is sold at ₹150 per unit and its variable cost is ₹70 per unit. The fixed expenses of the business are ₹8,000 per year. Break-even point (in units) is —
(A) 200 units
(B) 50 units
(C) 115 units
(D) 100 units.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Marginal Costing

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