Question

Question 17). If the selling price per unit is
Rs. 16, the unit variable cost is Rs. 12 and
fixed costs are Rs. 60,000; the break-even
points in units will be​

Answer 1

Given : selling price per unit is Rs. 16, the unit variable cost is Rs. 12 and

fixed costs are Rs. 60,000

To Find : the break-even points in units will be​

Solution:

Let say break even point in units  = x

variable cost  per unit is Rs. 12

Variable cost  = 12x   Rs

Fixed cost  = Rs 60000

Total Cost  = 12x  + 60000  Rs

selling price per unit is Rs. 16

=> Selling Price = 16x  Rs

At break even point cost and revenue should be same

Hence  16x  =  12x  + 60000

=> 4x  = 60000

=> x = 15000

break-even points in units will be​  15000

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