Myundia Motors now sells 1 million units at ¥3,529 per unit. Fixed operating costs are ¥1,290 million and variable operating costs are ¥1,500 per unit. If the company pays ¥410 million in interest, the levels of sales at the operating breakeven and breakeven points are, respectively:
A.¥1,500,000,000 and ¥2,257,612,900.
Operating Breakeven sales level is (fixed op cost/contribution per unit)* sales per unit.
So it will be {1290/(3529-1500)}*3529=2243.6 mn.
Similarly total Breakeven:
{(Fixed op+ fixed interest)/contribution per unit}* sales amount= {(410+1290)/2029}*3529=2956.7 mn.
Option B is the answer, hope it’s clear
total Breakeven:
{(410+1290)/2029}*3529=2956.7 mn.
Here from where did you find the 2029 figure?
3529-1500. As mentioned in operating Breakeven formula