Home › Previous year questions › GATE 2023 PI › Question 65GATE 2023 PI – Question 65 Operations Research and Operations Management · Engineering Economy and Costing · 2 marks · Numerical answer
Products P and Q sell in a 10:1 ratio. Fixed cost is ₹140000. Selling prices are ₹10/unit for P and ₹40/unit for Q; variable costs are ₹5 and ₹20/unit respectively. Find break-even revenue in rupees (integer).
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Show answer and explanation Correct answer: 280000 to 280000
Explanation One sales bundle of 10 P and 1 Q earns 10×10+40 = ₹140 revenue, with variable cost 10×5+20 = ₹70. Contribution/revenue ratio = 70/140 = 0.5. Break-even revenue = fixed cost / contribution ratio = 140000/0.5 = **₹280000**.
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