Question

a company manufacturing a single product incurring variable cost of rs. 300 per unit and fixed cost of rs. 2,00,000. if the product is sold at rs. 500 per unit, find the break even point in rupees.

Answer 1

Answer:

the answer will be 1333 * 500

Answer 2

Answer: break even points in units   =  fixed cost/ contribution per unit

                                                               = 200000/200  =1000 units                              

break even in rupees = fixed cost/  P/V ratio

                                 =200000/0.4

                                  =500000

 P/V ratio  =  contribution/sales *100

                  200 (500-300)/ 500 = 0.4

                   and in percentage =40%