A firm's break-even point is 4,000 units. The variable cost per unit is ₹20, and the fixed cost is ₹40,000. What is the selling price per unit? MCQ with Answer and Explanation

Question
A firm's break-even point is 4,000 units. The variable cost per unit is ₹20, and the fixed cost is ₹40,000. What is the selling price per unit?
A. ₹25
B. ₹35
C. ₹40
D. ₹30
Answer: Option D
Solution (By JKSSB Mock Tests)
At BEP, Total Contribution = Fixed Costs. Contribution per unit = Fixed Cost / BEP units = 40,000 / 4,000 = ₹10. Selling Price = Variable Cost + Contribution = 20 + 10 = ₹30.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Correct Answer: Option D

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This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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