Corporate Finance Q118
118The 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:
- Option : C
- Explanation : QBE = (F + C) / (P - V) = (200 billion) / (0.12 - 0.053)million = 2.99 million.
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