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    Question

    A company has fixed costs of ₹80,000, variable cost

    per unit ₹40, and selling price per unit ₹60. What is the break-even sales (in units)?
    A 2,000 units Correct Answer Incorrect Answer
    B 3,000 units Correct Answer Incorrect Answer
    C 4,000 units Correct Answer Incorrect Answer
    D 5,000 units Correct Answer Incorrect Answer

    Solution

    Break-even point = Fixed Costs / (Selling Price – Variable Cost) = ₹80,000 / (₹60 – ₹40) = ₹80,000 / ₹20 = 4,000 units

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