{"id":57124,"date":"2024-04-16T00:56:36","date_gmt":"2024-04-16T00:56:36","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57124"},"modified":"2024-04-16T00:56:36","modified_gmt":"2024-04-16T00:56:36","slug":"if-selling-price-is-rs-10-variable-cost-per-unit-is-rs-6-and-total-fixed-costs-are-rs-48000-then-the-break-even-point-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-selling-price-is-rs-10-variable-cost-per-unit-is-rs-6-and-total-fixed-costs-are-rs-48000-then-the-break-even-point-will-be\/","title":{"rendered":"If, Selling price is Rs. 10; Variable cost per unit is Rs. 6 and Total fixed costs are Rs. 48,000 Then the Break Even Point will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 72,000&#8243; option2=&#8221;Rs. 96,000&#8243; option3=&#8221;Rs. 1,20,000&#8243; option4=&#8221;Rs. 1,60,000&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>C. Rs. 1,20,000<\/strong><\/p>\n<p>The break-even point is the point at which a company&#8217;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:<\/p>\n<p>Break-even point = Fixed costs \/ Contribution margin per unit<\/p>\n<p>Contribution margin per unit = Selling price per unit &#8211; Variable cost per unit<\/p>\n<p>In this case, we are given the following information:<\/p>\n<ul>\n<li>Selling price per unit = Rs. 10<\/li>\n<li>Variable cost per unit = Rs. 6<\/li>\n<li>Total fixed costs = Rs. 48,000<\/li>\n<\/ul>\n<p>Substituting these values into the formula, we get:<\/p>\n<p>Break-even point = Rs. 48,000 \/ (Rs. 10 &#8211; Rs. 6) = Rs. 1,20,000<\/p>\n<p>Therefore, the break-even point is Rs. 1,20,000.<\/p>\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 72,000&#8243; option2=&#8221;Rs. 96,000&#8243; option3=&#8221;Rs. 1,20,000&#8243; option4=&#8221;Rs. 1,60,000&#8243; 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-57124","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>If, Selling price is Rs. 10; Variable cost per unit is Rs. 6 and Total fixed costs are Rs. 48,000 Then the Break Even Point will be<\/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\/if-selling-price-is-rs-10-variable-cost-per-unit-is-rs-6-and-total-fixed-costs-are-rs-48000-then-the-break-even-point-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If, Selling price is Rs. 10; 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