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Question

What should be the selling price per unit (in Rs) to achieve a break-even if the total number of units produced is 1000?

A
12500
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B
15500
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C
17500
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D
Cannot be determined
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Solution

The correct option is B 15500
Total cost of production for 1000 units = 155 × 105. Hence, to obtain the break even, the SP/unit = Rs15,500. Therefore option (b) is the correct answer

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