A company manufactures a single product with a variable cost per unit of Rs. 22. The contribution to sales 48 What is the breakeven point in units?
Answers
Components arriving at a distributor are checked for defects by two different inspectors (each component is checked by both inspectors). The first inspector detects 90% of all defectives that are present, and the second inspector does likewise. At least one inspector does not detect a defect on 20% of all defective components. What is the probability that the following occur? a. A defective component will be detected only by the first inspector? By exactly one of the two inspectors? b. All three defective components in a batch escape detection by both inspectors (assuming inspections of different components are independent of one another)?
Concept: To find out the correct answer
Given: A few hints
Find: The break even points
Solution: When we determine a the break-even point
Break-Even Point is calculated by dividing the fixed costs by contribution margin = Fixed Costs ÷ Contribution Margin.
C M = Price of Product – Variable Costs.
48 = Price of product - 22
Price of product = 48 - 22 = 26
Hence, the question us solved
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