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A company is to market a new product. It can produce up to 1,50,000 units of this product. The following are the estimated cost data:Fixed Cost - Variable CostFor Production upto 75,000 units ? 8,00,000 60%Exceeding 75,000 units ?12,00,000 50%Sale price is expected to be ?25 per unit. How many units must the company sell to break even?

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Syllabus (with weightage)
A. Cost Management 20%
B. Strategic Cost Management Tools and Techniques 50%
C. Strategic Cost Management - Application of Statistical Techniques in Business Decisions 30%

Related Test: CMA Intermediate Exam: Cost and Management Accounting


A company is to market a new product. It can produce up to 1,50,000 units of this product. The following are the estimated cost data:<br>Fixed Cost - Variable Cost<br>For Production upto 75,000 units ? 8,00,000 60%<br>Exceeding 75,000 units ?12,00,000 50%<br>Sale price is expected to be ?25 per unit. How many units must the company sell to break even?






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