Fixed cost is Rs 60,000, price Rs 50 and variable cost Rs 20 per unit. Break-even units?
A2,500 units
B3,000 units
C1,200 units
D2,000 units
Answer & Solution
Correct answer: D. 2,000 units
Contribution is Rs 30 per unit, so 60,000 divided by 30 gives 2,000 units to cover fixed cost.
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