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Sales 1,00,000 units at ₹10/unit; VC ₹6/unit; FC ₹2,00,000. Break-even quantity is:
A50,000 units
B40,000 units
C30,000 units
D80,000 units
Answer & Solution
Correct answer: A. 50,000 units
1. Contribution per unit = 10 − 6 = ₹4.
2. BEP units = Fixed Cost / Contribution per unit = 2,00,000 / 4.
3. Result = 50,000 units.
_Source: ICAI BoS CA Inter Paper 6A, Ch 6 "Financing Decisions — Leverages", §3_
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