Two alternatives can produce a product. First has a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs.30. The break even quantity between the two alternatives is
A. 25
B. 50
C. 75
D. 100
Answer:A
Two alternatives can produce a product. First has a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs.30. The break even quantity between the two alternatives is
A. 25 B. 50 C. 75 D. 100
Explanation: If x is the break even quantity, then