A company produces a commodity with Rs 24,000 as fixed cost. The variable cost estimated to be `25%` of the total revenue received on selling the product, is at the rate of Rs 8 per unit. Find the break-even point.

Answer

To find the break-even point for the company, we will follow these steps:

### Step 1: Define the Variables
Let:
- Fixed Cost (FC) = Rs 24,000
- Variable Cost (VC) = 25% of Total Revenue (TR)
- Selling Price per unit (SP) = Rs 8

### Step 2: Set Up the Revenue Equation
We know that:
\[ \text{Total Revenue (TR)} = \text{Variable Cost (VC)} + \text{Fixed Cost (FC)} \]

Since VC is 25% of TR, we can express this as:
\[ TR = 0.25 \times TR + FC \]

### Step 3: Substitute the Fixed Cost
Substituting the fixed cost into the equation, we have:
\[ TR = 0.25 \times TR + 24000 \]

### Step 4: Rearrange the Equation
To isolate TR, rearrange the equation:
\[ TR - 0.25 \times TR = 24000 \]
\[ 0.75 \times TR = 24000 \]

### Step 5: Solve for Total Revenue
Now, divide both sides by 0.75:
\[ TR = \frac{24000}{0.75} \]
\[ TR = 32000 \]

### Step 6: Calculate the Break-Even Point in Units
To find the break-even point in terms of units, we use the formula:
\[ \text{Break-Even Point (BEP)} = \frac{TR}{SP} \]
Where SP is the selling price per unit.

Substituting the values we have:
\[ BEP = \frac{32000}{8} \]
\[ BEP = 4000 \text{ units} \]

### Conclusion
The break-even point is 4000 units.