A company 39 s break even point is 6 000 units per annum The selling price is Rs 90 per unit and the...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs?

Rs. 120

Rs. 2,40,000

Rs. 3,00,000

Rs. 5,40,000

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Explanation:

In simple words, the break-even point can be defined as a point where total costs (expenses) and total sales (revenue) are equal. Break-even point can be described as a point where there is no net profit or loss.