Statistics & Applications

Financial Math

Easy

applied

The level of production where the revenue from sales is equal to the cost of production and marketing is known as

the marginal cost point.

the fixed cost point

the break even point.

the fixed profit point.

✅ Correct Option: 3

The level of production where revenue from sales equals the cost of production and marketing is the break-even point.

At the break-even point:

Revenue = Total Costs

This means there is no profit and no loss. The business is simply "breaking even."

Consider a business that sells lemonade:

Costs (lemons, sugar, cups) = ₹500

Revenue from sales = ₹500

Since ₹500 = ₹500, the business has reached the break-even point.

Marginal cost refers to the cost of producing one additional unit, not the point where revenue equals total cost.

Fixed cost represents costs that remain constant (like rent or salaries), but this is only one component of total cost.

Fixed profit point is not a standard business term. At break-even, profit is zero, not fixed.

Therefore, the correct answer is Option 3 - the break even point.

2026: 21 May Shift 2

Mr. Bean wishes to purchase a house for ₹90,00,000 with a down payment of ₹10,00,000 and balance in EMI for 25 years on reducing balance payment basis. If bank charges 6% per annum compounded monthly, then his EMI is;

(Use $(1.005)^{300} = 4.4650$ )

2025: 22 May Shift 2

Anush takes a loan of ₹ 150000 @ 16% annual interest for 5 years. His EMI (Equally Monthly Installment) on monthly basis under flat rate system is:

2026: 21 May Shift 2

Renu takes a loan of ₹12,00,000 with 12% annual interest for 10 years on flat rate basis..

Match the LIST-I with LIST-II

LIST-I		LIST-II
A. Principal of the loan		I. ₹14,40,000
B. Total interest on the principal		II. ₹26,40,000
C. EMI		III. ₹12,00,000
D. Total amount paid in 10 years		IV. ₹22,000

Choose the correct answer from the options given below:

2026: 29 May Shift 1

Ram invested ₹10,000 in a stock of a company for 6 years. The value of his investment at the end of each year is given below:

	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
	₹10,000	₹11,500	₹13,000	₹11,800	₹12,200	₹14,000

Then CAGR % of his investment is:

(Given $(1.4)^{1/6}=1.058$ )

2026: 18 May Shift 2

A father has setup a sinking fund in order to have ₹ 2,40,000 after 10 years for his daughter's marriage. How much amount should he set aside bi-annually into an account paying 5% per annum compounded half-yearly?

[given : $(1.025)^{20}\approx 1.6$ ]

2025: 2 June Shift 1

A machine costing ₹ 3,00,000 will have its scrap value of ₹ 50,000. The company at present plans to put ₹ 36,650 per annum at the end of each year in a sinking fund at the rate 5% per annum for the replacement of the machine after its useful life. Suppose the new machine will cost ₹ 4,00,000 at that time, then the useful life (approx.) of the machine is : [Given: $(1.4775)^{1/8} = 1.05$ ]

The level of production where the revenue from sales is equal to the cost of production and marketing is known as

Solution

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