Question:-
In the production of a product the fixed costs are Rs. 6,000/- and the variable cost is Rs. 10/- per product. if the sale price of the product is Rs. 12/-, the break even volume of products to be made will be:
Option (A)
2000
Option (B)
3000
Option(C)
4000
Option(D)
6000
Correct Option:
(B)
Question Solution:
(Cs - Cv) xx = CF
Þ x = (CF / (Cs - Cv)) = (6000 / (12-10)) = 3000
question-answer-faq-8919