A product has a fixed cost of ₹12,000, a variable cost of ₹30 per unit and sells for ₹50 per unit. How many units must be sold to break even?
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Hint
Each unit sold covers s − b rupees of the fixed cost.
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Answer: C. 600
Profit P = (s − b)x − a. Breaking even means P = 0, so x = a ÷ (s − b) = 12,000 ÷ (50 − 30) = 600 units.