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    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.
    A 20,000 Correct Answer Incorrect Answer
    B 15,000 Correct Answer Incorrect Answer
    C 7,500 Correct Answer Incorrect Answer
    D 10,000 Correct Answer Incorrect Answer
    E 18,000 Correct Answer Incorrect Answer

    Solution

    Required Contribution = FC + Desired Profit = ₹6L + ₹2L = ₹8L  Contribution/unit = ₹120 – ₹80 = ₹40  Required units = ₹8L / ₹40 = 20,000 

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