Mathematics · Cost Accounting - Break-Even Analysis
MTC Ltd. sold 2,75,000 units of its product at ₹37.50 per unit. Variable costs are ₹17.50 per unit (Manufacturing cost ₹14 and selling cost ₹3.50 per unit). Fixed costs are incurred uniformly throughout the year and amount to ₹35,00,000. There are no beginning and ending inventories. How much sales revenue should the company generate to earn a desired profit of ₹2,50,000?
- 1₹70,00,000
- 2₹73,50,000
- 3₹75,00,000
- 4₹70,31,250✓
Correct answer
₹70,31,250
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