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In a company, the cost of producing one item is ₹100, if the item is sold at ₹150 and ₹50,000 is the fixed cost of the company, then the break-even point is:

Solution

✅ Correct Option: 4

The break-even point is where total revenue equals total cost.

Contribution per item =150−100=₹50=150-100=₹50.

Break-even quantity =fixed costcontribution=5000050=1000=\frac{\text{fixed cost}}{\text{contribution}}=\frac{50000}{50}=1000 items.

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