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    Question

    Jay Ltd sells units for Rs 4/bottle. The variable cost

    for the unit per bottle is Rs.2 and has a fixed operating cost of Rs 4000 and a fixed financing cost of Rs 6000. What is Jay Ltd’s breakeven quantity of sales in units?
    A 2000 Correct Answer Incorrect Answer
    B 3000 Correct Answer Incorrect Answer
    C 4000 Correct Answer Incorrect Answer
    D 5000 Correct Answer Incorrect Answer
    E 6000 Correct Answer Incorrect Answer

    Solution

    Breakeven quantity = (fixed operating cost + fixed financing cost)/ (price – variable cost per unit) = (6000+4000) / 4-2 =10000/2 = 5000

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