For a small scale toy factory, the fixed cost per month is Rs. 5000/-. The variable cost per toy is Rs. 20 and sales price is Rs. 30 per toy. The break even production per month will be _________________ toys ?
Correct answer: B
Explanation
Break-even units = Fixed Cost / (Selling Price - Variable Cost). So, 5000 / (30 - 20) = 500 toys.