Question

    A factory produces a product with selling price ₹500,

    variable cost ₹300 and fixed cost ₹9,00,000. Due to market conditions, price is reduced by 10%. What is the revised breakeven sales (in units)?
    A 4,000 Correct Answer Incorrect Answer
    B 5,000 Correct Answer Incorrect Answer
    C 6,000 Correct Answer Incorrect Answer
    D 8,000 Correct Answer Incorrect Answer

    Solution

    New price = ₹500 – 10% = ₹450 Contribution = ₹450 – ₹300 = ₹150 BEP = Fixed Cost / Contribution = ₹9,00,000 / ₹150 = 6,000 units

    Practice Next