The GATE Grind

GATE 2022 AG – Question 16

Farm Machinery · Farm Machinery · 1 mark · Multiple choice

A combine has annual fixed cost Rs. 300000 and operating cost Rs. 6000/ha. Which combination of annual use (ha) and custom rate (Rs./ha) gives break-even?

  1. 200 and 7500
  2. 210 and 6300
  3. 180 and 9200
  4. 250 and 6100

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Correct answer: (A) 200 and 7500

Explanation

Break-even requires $A(R-6000)=300000$. Option A gives $200(7500-6000)=300000$. B, C and D give contributions of 63000, 576000 and 25000 respectively. Thus **200 ha and Rs. 7500/ha, A**.

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