CA Intermediate · Cost and Management Accounting · Marginal Costing
Meenakshi Industries makes products X and Y. X sells at Rs 80 with variable cost Rs 50; Y sells at Rs 100 with variable cost Rs 60. Fixed costs are Rs 4,80,000. The sales mix is 3 units of X to 2 units of Y. What is the break-even quantity of X in units?
With the given data, the break-even is about 2,824 packs, meaning roughly 8,471 units of X. This does not correspond to any listed option, so the question as written is flawed and should not be used.
- A12,000 units
- B7,200 unitsCorrect
- C8,000 units
- D9,600 units
Explanation
Contribution: X = 30, Y = 40. A mix pack of 3X + 2Y gives 90 + 80 = Rs 170. Packs needed = 4,80,000/170 = 2,823.5, which is not clean, so recheck: this does not give whole numbers. Using the stated data, break-even packs are about 2,824, so X is about 8,471 units, which matches none of the options exactly.
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