The situation
The maker sells uniforms at ₹900, variable cost is ₹540 and monthly fixed cost is ₹180,000.
Your task
How many units break even and what happens at 620 units?
Reveal step-by-step solution
Set up the problem
Contribution is ₹900 − ₹540 = ₹360 per uniform.
Work through the numbers
Break-even volume is ₹180,000 ÷ ₹360 = 500 units. At 620 units contribution is ₹223,200.
Interpret the result
Operating profit at 620 units is ₹43,200 under the stated cost range.
What to remember
Use unit contribution rather than selling price. Round required whole units up when needed.