Question

What is the breakeven quantity of weekly production for this particular situation fixed cost rs 1.500 per week variable cost rs3 per unit revenue rs 6 per unit

Answer 1

Answer: The breakeven quantity of weekly production would be Rs 0.5.

Step-by-step explanation:

The breakeven quantity can be calculated by  

BEQ= FC/(P-VC) where FC=fixed cost, P=price, and VC= variable cost.

We have,

FC=1.500

VC=3

P= revenue per unit=6

So,

BEQ= 1.5/(6-3)=1.5/3=1/2=0.5