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