# Mechanical Engineering - Industrial Engineering and Production Management - Discussion

Discussion Forum : Industrial Engineering and Production Management - Section 2 (Q.No. 26)
26.
Two alternatives can produce a product. First has a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs. 30. The break even quantity between the two alternatives is
25
50
75
100
Explanation:
No answer description is available. Let's discuss.
Discussion:
4 comments Page 1 of 1.

LUCKY said:   5 years ago
To solve this equate the above conditions in Break Even Equation as:

Q= FIXED COST+ VARIABLE COST * NO OF UNITS.

2000+ 20*X = 1500+ 30*X.
500 = 10*X.
Here the break-even quantity is:
x= 50 units.

Khaan said:   7 years ago
Fixed cost/sales cost - variable cost = Q (BEP).

From both values, Equating both sides you get sales cost.

Ashok kumar said:   8 years ago
Break even quantity = Fixed cost/(Selling cost-variable cost).

So we can use for that: 2000/(x-20) = 1500/(x-30).

After that we can get x = 60.

BEP = 1500/(60-30) = 50.