A firm has annual fixed costs of Rs.3.2 million and variable costs of Rs.7 per unit. It is considering an additional investment of Rs. 800,000, which will increase the fixed costs by Rs. 150,000 per year and will increase the contribution by Rs. 2 per unit. No change is anticipated in the sales volume or the sales price of Rs.15 per unit. What is the break-even quantity if the new investment is made?

Answer rating: 100% (QA)

To calculate the breakeven quantity after the new investment is made we need to compare the total co... View the full answer