A furniture workshop has fixed monthly costs of ₹24000, and every chair it makes costs a further ₹600 in materials. If a chair sells for ₹1000, how many chairs must be sold in a month for the workshop to break even?

Question

Accepted Answer

60. Each chair sold contributes 1000 − 600 = ₹400 towards the fixed ₹24000. Break-even needs 24000/400 = 60 chairs. (Dividing the fixed cost by the ₹1000 selling price gives 24, which quietly assumes the chairs cost nothing to make.)

A furniture workshop has fixed monthly costs of ₹24000, and every chair it makes costs a further ₹600 in materials. If a chair sells for ₹1000, how many chairs must be sold in a month for the workshop to break even?

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