How many more/lesser units of Ducati than Bajaj(approx.) have been sold when both the models reach their break even point ?

28846

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73770

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7169

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Cannot be determined

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Solution

The correct option is C 7169
Break even occurs when Project cost = Revenue
$\to$ Number of units sold to break even $= \frac{P r o j e c t C o s t}{S e l l i n g p r i c e o f e a c h u n i t}$
Conventional approach

$\begin{matrix} M o d e l & P r o j e c t C o s t (c r o r e s) & S e l l i n g p r i c e & N u m b e r o f u n i t s s o l d t o b r e a k e v e n (x) B a j a j & 105 & 58968 & 17807 H o n d a & 140 & 83160 & 16836 Y a m a h a & 210 & 123552 & 16997 K a w a s a k i & 280 & 135135 & 20721 D u c a t i & 420 & 168168 & 24976 \end{matrix}$

Alternate Approach
The ratio of Project cost of each model is 3 : 4 : 6 : 8 : 12
The selling price of each model is in the ratio $\frac{3}{11} : \frac{5}{13} : \frac{4}{7} : \frac{5}{8} : \frac{7}{9}$ or $1 : \frac{55}{39} : \frac{44}{21} : \frac{55}{24} : \frac{77}{27}$

The number of units to break even will be in the ratio $3 : \frac{156}{55} : \frac{63}{23} : \frac{192}{55} : \frac{108}{7} : 3 : 2.83 : 2.74 : 3.5 : 4.2$

Difference in the number of units of Ducati and Bajaj is $= 1.2 x$ where x is approximately $\frac{360000000}{60000} \approx 6000$

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