For a small scale industry, the fixed cost per month is Rs. 5,000. The variable cost per product is Rs. 20 and sales price is Rs. 30 per piece. The break even production per month will be
A. 300
B. 460
C. 500
D. 1,000
Answer: Option C
Solution(By Examveda Team)
Equation we used$$\eqalign{ & \frac{{{\text{Fixed cost}}}}{{{\text{Sales price}} - {\text{Variable cost}}}} \cr & = \frac{{5,000}}{{30 - 20}} \cr & = 500 \cr} $$
Related Questions on Industrial Engineering and Production Management
The essential condition for the decompression of an activity is that
A. The project time should change due to decompression
B. After decompression the time of an activity invariably exceeds its normal time
C. An activity could be decompressed to the maximum extent of its normal time
D. None of the above
A. CAM < DAM
B. CAM > DAM
C. CAM = DAM
D. There is no such criterion
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