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This question was previously asked in

ESE Mechanical 2015 Paper 2: Official Paper

- 1000
- 2000
- 500
- 900

Option 1 : 1000

Free

CT 1: Ratio and Proportion

2672

10 Questions
16 Marks
30 Mins

__Concept:__

If x number of units are produced in the system then

Total sale = sx

Fixed cost = F

variable cost = vx

and Profit = P,

where s is the sale cost per unit and v is the variable cost per unit

Total sale = Total cost + Profit

sx = F + vx + P

At break-even point, Profit (P) = 0

So, sx = F + vx

\(x = \frac{F}{{s - v}}\)

**Calculation:**

Given, F = 100000 Rs., v = 100 Rs. and s = 200 Rs.

Then,

\(x = \frac{100000}{{200 - 100}}= 1000 \;units\)

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