An organization has decided to produce a new product. Fixed cost for p – McqOptions

MCQOPTIONS

1.	An organization has decided to produce a new product. Fixed cost for producing the product is estimated as Rs. 1,00,000. Variable cost for producing the product is Rs. 100. Market survey indicated that the product selling price could be Rs. 200. The break-even quantity is
A.	1000
B.	2000
C.	500
D.	900
Answer» B. 2000

Discussion

No Comment Found

Related MCQs

An item can be purchased for Rs.100. The ordering cost is Rs.200 and the inventory carrying cost is 10% of the item cost per annum. If the annual demand is 4000 units, the economic ordering quantity is
ABC inventory control focuses on those
A component can be produced by any of the four processes I, II, III and IV. Process I has a fixed cost of Rs 20 and variable cost of Rs 3 per piece. Process II has a fixed cost of Rs 50 and variable cost of Re 1 per piece. Process III has a fixed cost of Rs 40 and variable cost of Rs 2 per piece. Process IV has a fixed cost of Rs 10 and variable cost of Rs 4 per piece. If the company wishes to produce 100 pieces of the component, from economic point of view it should choose
In case of break-even analysis, a change in product mix is likely to influence
Johnson's rule is used for
In the ABC classification system of inventory management, _____ group items have a low level of safety stock.
Pallet is an example for which operating principle of material handling plan?
In motion study, the Therblig symbol represents:
At break even point slope of sales line is equal to
Annual demand for window frames is 10000. Each frame costs Rs. 200 and ordering cost is Rs. 300 per order. Inventory holding cost is Rs. 40 per frame per year. The supplier is willing to offer 2% discount if the order quantity is 1000 or more, and 4% if order quantity is 2000 or more. If the total cost is to be minimized, the retailer should