Variable cost is Rs 15 and fixed costs Rs 36,000. Price rises from Rs 25 to Rs 33. New break-even?
A2,400 units
B3,600 units
C1,500 units
D2,000 units
Answer & Solution
Correct answer: D. 2,000 units
The new contribution is 33 - 15 = Rs 18, and 36,000 divided by 18 is 2,000 units.
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