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Industrial Engineering and Production Management
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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
$$\eqalign{ & \frac{{{\text{Fixed cost}}}}{{{\text{Sales price}} - {\text{Variable cost}}}} \cr & = \frac{{5,000}}{{30 - 20}} \cr & = 500 \cr} $$
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