Question

Calculate Break Even Sales
(in Rs.) of Lily Ltd. using the
information given below.
Sales : 40,000 Units Sales :
Rs. 8,00,000 Variable Cost :
Rs. 15 Per Unit Fixed Cost :Rs.
5,00,000​

Answer 1

Explanation:

The immune system is a complex network of cells and proteins that defends the body against infection. The immune system keeps a record of every germ (microbe) it has ever defeated so it can recognise and destroy the microbe quickly if it enters the body again.

Answer 2

Break-even sales will be ₹200000.

Explanation:

• Break-even sales is the point where there is no profit and no loss to the firm means contribution is equals to fixed cost.

Given: Sales : 40,000

           Units Sales : Rs. 8,00,000

           Variable Cost : Rs. 15 Per Unit

           Fixed Cost :Rs5,00,000.

To find: Break-even sales.

Solution:

​Calculation of break-even sales:

Sales                                        = ₹800000

variable cost(40000*15)       = (₹600000)

Contribution                           = ₹200000

Break-even sales = Fixed cost/ PV Ratio

                             = 500000/25% = ₹200000

PV Ratio = contribution/sales*100

               = 200000/800000 = 25%