CA Inter P4 · Chapter 13 · Question 2 of 10
For the same product (selling price ₹250, variable cost ₹160 per unit), fixed costs are ₹10,80,000 per annum. The break-even sales are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) ₹30,00,000
Explanation
Contribution per unit = ₹90. Break-even units = ₹10,80,000 / ₹90 = 12,000 units. Break-even sales = 12,000 x ₹250 = ₹30,00,000. Alternatively, ₹10,80,000 / 36% = ₹30,00,000.
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