"What is the company's breakeven 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.
"
A. 8,000 units
B. 8,333 units
C. 10,000 units
D. 10,909 units
Answer: Option D
Cal fixed cost =4*10000+.80*10000=48000
Cal variable cost p.u =1.20+.40=1.60
Cal contribution p.u =sales-vc p.u
6-1.60=4.40 cont. P.u
Cal BEP unit =fc/cont. P.u
BEP unit sales=48000/4.40=10909