Sales Rs.25000; variable cost Rs.8000; fixed cost Rs.5000; break even sales in value ?
A. Rs.7936
B. Rs.7353
C. Rs.8333
D. Rs.9090
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= Fixed Cost / [ (Sale – Variable Cost) / Sale]
= 5000 / [ (25000 – 8000) / 25000]
= 5000 / [ (17000) / 25000]
= 5000 / [0.68]
= 7352.94
≈ 7353.