Question

A factory produces 300 units and 900 units at a total cost of Rs.6800/- and Rs.10400/- respectively. If the selling price is Rs.8/- per unit, the break-even point will arise at the level of units.​

Answer 1

Answer:

The break-even point will arise at 2150 units.

Step-by-step explanation:

The total cost for producing 300 units is 6800 and that of 900 units is 10,400.

So the total cost for producing 1200 units is,

$Total \ cost = 6800+10400= 17200$

Also, the selling price is Rs. 8 per unit.

The break-even point is the point at which the total cost and total revenue are the same.

Let $x$ be the break-even point. That the revenue obtain from selling $x$ number of units is equal to the total cost. So we get the equation,

$8\times x=17200\\\\x=\dfrac{17200}{8}=2150$

So the break-even point is 2150.