Question

A company is having sales of rs.1,00,000, fixed cost of rs.20,000/, break even point at rs.80,000/- the profit would be:

Answer 1

Answer:

One can determine the break-even point in sales dollars (instead of units) by dividing the company's total fixed expenses by the contribution margin ratio. The ratio can be calculated using company totals or per unit amounts.To calculate a break-even point based on units: Divide fixed costs by the revenue per unit minus the variable cost per unit. The fixed costs are those that do not change no matter how many units are sold. The revenue is the price for which you're selling the product minus the variable costs, like labor and materials