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