Two alternatives can produce a product. First has a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs.30. The break even quantity between the two alternatives is
Two alternatives can produce a product. First has a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs.30. The break even quantity between the two alternatives is Correct Answer 50
If x is the break even quantity, then 2000 + 20x = 1500 + 30x or, x = 50.