Question

Last year, a manufacturer produced 15000
products which were sold for Rs. 300 each
At that volume, the fixed costs were Rs.
15.2 lacs and total variable costs were Rs.
21 lacs. The break even quantity of product
would be:
(A) 4000
(B) 7800
(C) 8400
(D) 9500​

Answer 1

Answer:

it may be (A)4000. But my answer may also be wrong. because I'm not sure

Answer 2

Answer:

The break even quantity of product would be: 9500

Explanation:

A manufacturer produced 15000 products.

Each was sold for Rs. 300

Hence total cost or selling price = 15000 × 300 =Rs. 4500000

Selling price = fixed cost + variable cost

Variable cost of 15000 unit = Rs.2100000

variable cost per unit, v= 21x100000/15000 =Rs. 140

break even quantity (B E Q) = $\frac{fixed cost}{selling cost per unit - variable cost per unit}$

                                            = 1520000 / (300 - 140)

                                           = 1520000 / 160 = 9500