- 1 Marks
Question
Assume that the standard selling price of a medium-size detergent produced by BICU Nigeria Limited is N250 per unit. If the total fixed cost is N85,000 and the cost of producing each unit is N130, what is the smallest number of units which the company should produce in order to break even?
A. 709
B. 708
C. 707
D. 706
E. 700
Answer
A
Explanation: The break-even point (BEP) is calculated


- Tags: Break-Even Point, Cost Analysis, Production
- Level: Level 1
- Topic: Mathematics of Business Finance
- Series: NOV 2014
- Uploader: Dotse