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At break-even point of 400 units sold the variable costs were Rs. 400 and the fixed costs were Rs.200.?

What will be the401 units sold contributing to profit before taxes?

a) Rs.0.00

b) Rs.1.00

c) Rs.0.50

d) None of these

Money Market Profit Margins Accounting Finance Management
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/08/04
Upvote (1) Views (19) Followers (3) Answers (3) Report Question
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Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

Option (c) Rs.0.50 is the answer.

Aahyan Mumtaz
by Aahyan Mumtaz , Investment Associate - Growth Equity , Cyan Limited

Option C - Rs.0.50. As the selling price is Rs.400.5

Mohammed Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

C option correct

401.5-401-200=0.5

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