Question

From the information given below, determine

Break Even Point in units:

Selling price per unit – Rs.16.50

Trading discount per unit – Rs.1.50

Fixed expenses (aggregate) – Rs.7,50,000

Variable expenses per unit – Rs.11.00

Units of production – 3,00,000 units​

Answer 1

ANSWER:

The break-even point in units is $1,87,500$

Step-by-step explanation:

Given: Selling price per unit - $Rs.16.50$

            Trading discount per unit - $Rs.1.50$

             Fixed expenses - $Rs.7,50,000$

             Variable expenses per unit - $Rs.11.00$

              Units of production - $3,00,000 units$

To find the Break-even point in units.

Solution:

• The formula for

$Break-even point in units = \frac{Fixed Cost}{Selling Price per unit - Variable cost per unit}$

• Selling price per unit = $16.5-1.5=15.00$
• Variable cost per unit = $11$
• Break-even point $= \frac{7,50,000}{4}$
• Break-even point = $1,87,500$
• Therefore, the Break-even point is $1,87,500$.

PROJECT CODE: #SPJ1