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    Question

    A unit has Fixed Cost ₹40 crore. Variable cost is 60%

    of sales. What is the Break-even Sales?
    A ₹80 crore Correct Answer Incorrect Answer
    B ₹90 crore Correct Answer Incorrect Answer
    C ₹100 crore Correct Answer Incorrect Answer
    D ₹110 crore Correct Answer Incorrect Answer
    E ₹120 crore Correct Answer Incorrect Answer

    Solution

    P/V Ratio = 1 – 0.60 = 0.40 Break-even = 40 / 0.40 = ₹100 crore

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