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$$\eqalign{ & \frac{{{\text{Fixed cost}}}}{{{\text{Sales price}} - {\text{Variable cost}}}} \cr & = \frac{{5,000}}{{30 - 20}} \cr & = 500 \cr} $$
This Question Belongs to Mechanical Engineering >> Industrial Engineering And Production Management
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