Question

Calculate the BEP
Total fixed cost= $50,000
Total variable cost= $120,000
Total out put produced = 10,000 units
Total sales revenue = 250,000

a) BEP = 6154 UNITS
B) BEP= $ 96,150/-
C) BEP= $38460/-
D) BEP= 3846 units

Answer 1

Answer:

D 3846 units

Explanation:

BEP = FIXED COST ÷ (SALES REVENUE PER UNIT - VARIABLE COST PER UNIT

Sales revenue per unit= Total sales revenue/total unit = 250000/10000= 25

Variable Cost per unit= Total variable Cost/total unit = 120000/10000 = 12

BEP= 50000/(25-12) = 50000/13 = 3846.154

= 3846 unit approx ...( D ) Ans

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