Question:-
The indirect cost of a plant is Rs. 4,00,000 per year. The direct cost is Rs. 20 per product. If the average revenue per product is Rs. 6 0, the break-even point is
Option (A)
10000 products
Option (B)
20000 products
Option(C)
40000 products
Option(D)
60000 products
Correct Option:
(A)
Question Solution:
Break Even point = (400000 / (60-20))
= (400000 / 40) = 10000 products
question-answer-faq-8807