Which of the following are true for the given graph ? (A) Break even point is at x = 10 (B) Break even point is at x= 6 (C) Break even point is at x =0 (D) Fixed cost is 20 (E) Fixed cost is 0 Choose the correct answer from the options given below : |
(A) and (E) Only (B) and (E) Only (C) and (D) Only (B) and (D) Only |
(B) and (D) Only |
The correct answer is Option (4) → (B) and (D) Only Break even point is the level of output where total revenue equal total cost. This can be observed at $x=6$. Fixed Cost are express that do not vary with level of production. They even occur at 0 level of production. At 0 level of production, the cost is 20. |