“What is the company’s breakeven point: Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “

The correct answer is A. 8,000 units.

The breakeven point is the point at which a company’s revenue equals its costs. At this point, the company is neither making nor losing money. To calculate the breakeven point, we can use the following formula:

Breakeven point = Fixed costs / Contribution margin per unit

The contribution margin per unit is the amount of revenue that remains after deducting the variable costs per unit. In this case, the contribution margin per unit is $4.80, which is calculated as follows:

$6.00 selling price per unit – $1.20 variable production cost per unit – $0.40 variable selling cost per unit = $4.80 contribution margin per unit

Therefore, the breakeven point is 8,000 units, which is calculated as follows:

$4,000 fixed costs / $4.80 contribution margin per unit = 8,000 units

Option B is incorrect because it is the number of units that the company plans to produce and sell. Option C is incorrect because it is the number of units that the company actually produced and sold. Option D is incorrect because it is the number of units that the company needs to sell in order to make a profit of $10,000.