If variable cost per unit Rs. 90 and Fixed Cost is Rs. 6,00,000 What will be the selling price per unit if the break even point is 8,000 units?

Correct answer is165 thank you

Selling price per unit will be165 , So the correct answer :C

 

 

Option C-165 =>90+75 is the answer.

90 x8000 +600000 /8000 =165

- I f the company is going to produce8,000 units that means total variable cost would be Rs.720,000 (8000*90) adding the fixed cost of Rs600,000 total cost will be Rs1,320,000 dividing this amount by total units produced, selling price is Rs.165 to enable the company to break even (no profit no loss).

Answer (C) is correct.

Answer will be option C=165

As breakeven point(Units)  = Fixed Cost/ Contribution

We have8000 units=600,000/Contribution

So Contribution Will be75/Unit.

Selling Price= V.C+ Contribution

S.P=90+75

S.P=165/unit

                                                Fixed cost.

Break even point=......................................................

                                  Selling Price- Variable Cost

 

 

The selling price will be=13,20,000/8,000

                                           =165

 

The correct answer is option-C

Fixed cost per unit in production level8000 unit =600000/8000 =75 

total cost per unit =75+90=165

In break event point the selling price per unit  = total cost pet unit =165 , so the correct answer is (C)

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