Question
How many units will the company need to sell to earn a
profit of ₹2,00,000, given the Selling Price = ₹120/unit; Variable Cost = ₹80/unit and Fixed Cost = ₹6,00,000.Solution
Required Contribution = FC + Desired Profit = ₹6L + ₹2L = ₹8L Contribution/unit = ₹120 – ₹80 = ₹40 Required units = ₹8L / ₹40 = 20,000
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