{"id":52900,"date":"2024-04-15T23:46:06","date_gmt":"2024-04-15T23:46:06","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=52900"},"modified":"2024-04-15T23:46:06","modified_gmt":"2024-04-15T23:46:06","slug":"fixed-cost-will-be-divided-to-get-the-break-even-point-selling-price-in-rupees","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/fixed-cost-will-be-divided-to-get-the-break-even-point-selling-price-in-rupees\/","title":{"rendered":"Fixed cost will be divided to get the break even point selling price in rupees"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Variable cost per unit&#8221; option2=&#8221;Datum per unit&#8221; option3=&#8221;Fixed cost per unit&#8221; option4=&#8221;Profit volume ratio&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. Fixed cost per unit.<\/p>\n<p>The break-even point is the point at which a company&#8217;s total revenue equals its total costs. At this point, the company is neither making nor losing money. To calculate the break-even point, you need to know the following:<\/p>\n<ul>\n<li>Fixed costs: These are costs that do not change with the number of units produced or sold, such as rent, insurance, and salaries.<\/li>\n<li>Variable costs: These are costs that change with the number of units produced or sold, such as the cost of materials and labor.<\/li>\n<li>Selling price per unit: This is the price that the company charges for each unit of its product.<\/li>\n<\/ul>\n<p>Once you know these three numbers, you can use the following formula to calculate the break-even point:<\/p>\n<p>Break-even point = Fixed costs \/ (Selling price per unit &#8211; Variable cost per unit)<\/p>\n<p>For example, let&#8217;s say that a company has fixed costs of $100,000, a variable cost per unit of $5, and a selling price per unit of $10. In this case, the break-even point would be:<\/p>\n<p>Break-even point = $100,000 \/ ($10 &#8211; $5) = 20,000 units<\/p>\n<p>This means that the company needs to sell 20,000 units before it starts making a profit.<\/p>\n<p>The other options are not correct because they do not represent the costs that are used to calculate the break-even point.<\/p>\n<ul>\n<li>Variable cost per unit: This is a cost that changes with the number of units produced or sold. It is not used to calculate the break-even point because it does not represent the total costs of the company.<\/li>\n<li>Datum per unit: This is a term that is not used in business. It is not used to calculate the break-even point.<\/li>\n<li>Profit volume ratio: This is a ratio that measures the relationship between a company&#8217;s profit and its sales. It is not used to calculate the break-even point.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Variable cost per unit&#8221; option2=&#8221;Datum per unit&#8221; option3=&#8221;Fixed cost per unit&#8221; option4=&#8221;Profit volume ratio&#8221; correct=&#8221;option3&#8243;]<\/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-52900","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fixed cost will be divided to get the break even point selling price in rupees<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/fixed-cost-will-be-divided-to-get-the-break-even-point-selling-price-in-rupees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fixed cost will be divided to get the break even point selling price in rupees\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Variable cost per unit&#8221; 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