[amp_mcq option1=”It is not possible to determine from the above information” option2=”13 boats” option3=”25 boats” option4=”20 boats” correct=”option2″]<\/p>\n
The correct answer is: B. 13 boats<\/p>\n
The break-even point is the point at which a company’s revenue equals its costs. In other words, it is the point at which the company neither makes nor loses money.<\/p>\n
To calculate the break-even point, we can use the following formula:<\/p>\n
Break-even point = Fixed costs \/ Contribution margin per unit<\/p>\n
The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit.<\/p>\n
In this case, the fixed costs are Rs. 2,60,000\/- per month, the selling price per boat is Rs. 35,000\/-, and the variable cost per boat is Rs. 15,000\/-.<\/p>\n
Therefore, the contribution margin per unit is Rs. 35,000\/- – Rs. 15,000\/- = Rs. 20,000\/-<\/p>\n
The break-even point is therefore:<\/p>\n
Break-even point = Rs. 2,60,000\/- \/ Rs. 20,000\/- = 13 boats<\/p>\n
Therefore, the firm must manufacture and sell 13 boats before it starts making a profit.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”It is not possible to determine from the above information” option2=”13 boats” option3=”25 boats” option4=”20 boats” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-43882","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n