Corporate Finance Q118

0. The owner of a TV store is forecasting for the year 2014 and wants to find out the breakeven point of 2013 with the following data to ensure accuracy:
Revenue Rs. 0.12 million per TV set
Variable cost Rs. 0.053 million per TV set
Fixed cost (including interest cost) Rs. 200 billion

The breakeven quantity is closest to:

Answer
Comment
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Option : C
Explanation : QBE = (F + C) / (P - V) = (200 billion) / (0.12 - 0.053)million = 2.99 million.

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