Mechanical Engineering Exam > Mechanical Engineering Questions > Fixed investments for manufacturing a product...
Start Learning for Free
Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:
- a)4,000
- b)5,000
- c)10,000
- d)20,000
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Fixed investments for manufacturing a product in a particular year is ...
For break even point,
Fixed cost (F) + Var iable cost (V) × Quantity (Q)
= Selling price (S) × Quantity (Q)
= Selling price (S) × Quantity (Q)
Most Upvoted Answer
Fixed investments for manufacturing a product in a particular year is ...
Calculation of Break Even Point:
• Fixed Cost (FC) = Rs. 80,000/-
• Variable Cost per unit (VC) = Rs. 4/-
• Selling Price per unit (SP) = Rs. 20/-
The Break Even Point (BEP) formula is given below:
BEP (in units) = FC / (SP - VC)
Substituting the given values in the formula, we get:
BEP (in units) = 80,000 / (20 - 4)
BEP (in units) = 80,000 / 16
BEP (in units) = 5,000
Therefore, the Break Even Point (BEP) for the given scenario is 5,000 units.
Explanation:
• The fixed cost is the amount of money spent on manufacturing the product. In this case, it is Rs. 80,000/-.
• The variable cost per unit is the cost that varies with the number of units produced. In this case, it is Rs. 4/- per unit.
• The selling price per unit is the price at which each unit is sold. In this case, it is Rs. 20/- per unit.
• The Break Even Point (BEP) is the point at which the total revenue equals the total cost, i.e., there is no profit or loss.
• The formula to calculate BEP is FC / (SP - VC), where FC is the fixed cost, SP is the selling price per unit, and VC is the variable cost per unit.
• Substituting the given values in the formula, we get the BEP as 5,000 units.
• Hence, option 'B' is the correct answer.
• Fixed Cost (FC) = Rs. 80,000/-
• Variable Cost per unit (VC) = Rs. 4/-
• Selling Price per unit (SP) = Rs. 20/-
The Break Even Point (BEP) formula is given below:
BEP (in units) = FC / (SP - VC)
Substituting the given values in the formula, we get:
BEP (in units) = 80,000 / (20 - 4)
BEP (in units) = 80,000 / 16
BEP (in units) = 5,000
Therefore, the Break Even Point (BEP) for the given scenario is 5,000 units.
Explanation:
• The fixed cost is the amount of money spent on manufacturing the product. In this case, it is Rs. 80,000/-.
• The variable cost per unit is the cost that varies with the number of units produced. In this case, it is Rs. 4/- per unit.
• The selling price per unit is the price at which each unit is sold. In this case, it is Rs. 20/- per unit.
• The Break Even Point (BEP) is the point at which the total revenue equals the total cost, i.e., there is no profit or loss.
• The formula to calculate BEP is FC / (SP - VC), where FC is the fixed cost, SP is the selling price per unit, and VC is the variable cost per unit.
• Substituting the given values in the formula, we get the BEP as 5,000 units.
• Hence, option 'B' is the correct answer.
Attention Mechanical Engineering Students!
To make sure you are not studying endlessly, EduRev has designed Mechanical Engineering study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Mechanical Engineering.
|
Explore Courses for Mechanical Engineering exam
|
|
Similar Mechanical Engineering Doubts
Top Courses for Mechanical EngineeringView all
Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer?
Question Description
Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer?.
Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Mechanical Engineering.
Download more important topics, notes, lectures and mock test series for Mechanical Engineering Exam by signing up for free.
Here you can find the meaning of Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:a)4,000 b)5,000 c)10,000 d)20,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Mechanical Engineering tests.
|
|
Explore Courses for Mechanical Engineering exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup