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
Discussion:
4 comments Page 1 of 1.
Jay said:
1 decade ago
Break even quantity = fixed cost+variable cost.
2000+20x = 1500+30x.
x = 50.
2000+20x = 1500+30x.
x = 50.
Ashok kumar said:
9 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.
So we can use for that: 2000/(x-20) = 1500/(x-30).
After that we can get x = 60.
BEP = 1500/(60-30) = 50.
Khaan said:
8 years ago
Fixed cost/sales cost - variable cost = Q (BEP).
From both values, Equating both sides you get sales cost.
From both values, Equating both sides you get sales cost.
LUCKY said:
6 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.
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.
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