The correct answer is: C. Rs. 1,20,000
The break-even point is the point at which a company’s revenue equals its costs. At this point, the company is not making any profit or loss. To calculate the break-even point, we can use the following formula:
Break-even point = Fixed costs / Contribution margin per unit
Contribution margin per unit = Selling price per unit – Variable cost per unit
In this case, we are given the following information:
- Selling price per unit = Rs. 10
- Variable cost per unit = Rs. 6
- Total fixed costs = Rs. 48,000
Substituting these values into the formula, we get:
Break-even point = Rs. 48,000 / (Rs. 10 – Rs. 6) = Rs. 1,20,000
Therefore, the break-even point is Rs. 1,20,000.
Option A is incorrect because it is the total fixed costs. Option B is incorrect because it is the total variable costs. Option D is incorrect because it is twice the break-even point.