A product is sold at a price of ₹120 per unit and its variable cost is ₹80 per unit. The fixed expenses of the business are ₹8,000 per year. Break-even point is —
CS Executive · Cost and Management Accounting · PYQS · December 2014
A product is sold at a price of ₹120 per unit and its variable cost is ₹80 per unit. The fixed expenses of the business are ₹8,000 per year. Break-even point is —
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹24,000. Break-even sales = 8,000/[(120−80)/120] = 24,000.
Topics: Marginal Costing
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