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Fixed costs are Rs 60,000, price Rs 50 and variable cost Rs 30 a unit. What are the break-even units?

A3,000 units
B6,000 units
C1,200 units
D2,000 units
Answer & Solution
Correct answer: A. 3,000 units
Contribution is Rs 20 a unit, so 60,000 divided by 20 gives 3,000 units.
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