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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
Answer & Solution
Correct Answer:
Option
C
Equation we used
$$\eqalign{ & \frac{{{\text{Fixed cost}}}}{{{\text{Sales price}} - {\text{Variable cost}}}} \cr & = \frac{{5,000}}{{30 - 20}} \cr & = 500 \cr} $$
$$\eqalign{ & \frac{{{\text{Fixed cost}}}}{{{\text{Sales price}} - {\text{Variable cost}}}} \cr & = \frac{{5,000}}{{30 - 20}} \cr & = 500 \cr} $$
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