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"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units. "

Answer & Solution
Correct Answer: Option C
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2 Comments
Javeria Aarbi
Javeria Aarbi 2 years ago
Kindly solve total fixed cost.
Contribution per unit is 5.28= (6.6-1.32)
Selling price 6×1.1=6.6
Variable production cost 1.2×1.1 = 1.32
Utkarsh Varshney
Utkarsh Varshney 4 years ago
can you solve it please