Marginal costing
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 March 2014
A firm has a loss of Rs. 2.50 per unit when sales are 20000 units. When sales are 24000 units the loss is rs. 1.25 per unit.
Determine the break-even point.
Determine the break-even point.
Nikhil Kaushik
(Expert)
14 March 2014
should be 30000 units
let the fixed cost be y and per unit marginal contribution be x
form two equations
20000x - y = 20000*2.5
24000x - y = 24000*1.25
solve the same to get value of x as 5 and y as 150000. fit the same values in equation
Q*5-150000 = 0
let the fixed cost be y and per unit marginal contribution be x
form two equations
20000x - y = 20000*2.5
24000x - y = 24000*1.25
solve the same to get value of x as 5 and y as 150000. fit the same values in equation
Q*5-150000 = 0
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