If the break even quantity for a factory whose variable cost of manufacturing a tubelight is Rs 35 per unit and selling price is Rs 50 per unit is 600 units, find the fixed cost of the factory?

The formula for Break-Even Quantity (BEQ) is given by:
Break-Even Quantity=
Selling Price per unit−Variable Cost per unit
Fixed Cost
​

Given data:

Break-Even Quantity = 600units

Selling Price per unit = Rs 50

Variable Cost per unit = Rs 35

Let the Fixed Cost be F. Substituting the given values:

600=
50−35
F
​

600=
15
F
​

F=600×15=9000
Thus, the Fixed Cost of the factory is Rs 9000.