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Commerce · Q1839

Accounting

Graduate and Post Graduate · Commerce · question 1839

Q1839

A firm which manufctures boats has a fixed cost of Rs. 2,60,000/- per month. The selling price of the boat is Rs. 35,000/- boat. Variable cost per boat is Rs. 15,000/-. The boat yard can manufacture 20 boats per month. The break even output of the firm will be

A.
It is not possible to determine from the above information
B.
13 boats
Answer
C.
25 boats
D.
20 boats

Answer: Option B

Solution

Answer: Option B
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