Question
A company sells a product at ₹50 per unit. The
variable cost is ₹30 per unit and fixed costs are ₹2,00,000 per year. What is the Break-Even Point (in units)?Solution
Contribution per unit = Selling price − Variable cost = 50 − 30 = ₹20 Break-Even Point (units) = Fixed Cost ÷ Contribution per unit = 2,00,000 ÷ 20 = 10,000 units
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