A firm which makes boats has fixed cost of Rs. 2,60,000 per month. The product sells for Rs. 35,000 per boat

A firm which makes boats has fixed cost of Rs. 2,60,000 per month. The product sells for Rs. 35,000 per boat and the
variable cost of production is Rs. 15,000 per boat. The boat yard can manufacture 20 boats each month. What is the
firm’s break even output?
(A) Cannot be worked out from the data
(B) 13 boats
(C) Rs. 45,000
(D) 20 boats

Anurag Mishra Professor Asked on 14th July 2016 in Commerce.
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  • 1 Answer(s)

    Answer: (B) 13 boats 

    Anurag Mishra Professor Answered on 14th July 2016.
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