ABC company sells a single product at Rs 50 variable cost are 60% of the selling price and the company has a fixed cost that amount to Rs 400000. Current sales total 16000 units. If ABC company sells 24000 units it’s safety margin will be
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c.) will break-even by selling 20,000 units
Break-even in units = Total Fixed costs ÷ Fixed cost per unit; $400,000 ÷ [$50 − ($50 × 60%)] = 20,000 units
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