Question

Fixed cost is rs. 35000, variable cost is rs. 5 per unit, profit volume ratio is 10%, then break even point is rs?

500000
700000
175000
350000​

Answer 1

Explanation:

Fixed cost is rs. 35000,

variable cost is rs. 5 per unit,

profit volume ratio is 10%,

then break even point is rs?

Solution :

profit volume ratio = sales - variable cost/ sales × 100

Or

profit volume ratio = contribution/sales ×100

profit volume ratio is 10%

• Break even point :

Break even point = FC / profit volume ratio

= 35000 / 10

= 350000

Therefore, (option 350000)

Break even point = 350000

Answer 2

Answer:

(Option) Rs. 350000

Break Even Point = Rs. 3,50,000

Explanation:

Given :

Fixed Cost = Rs. 35,000,

Variable Cost = Rs. 5 per unit

Profit volume Ratio = 10%

To find :

Break Even Point is ?

Solution :

★ P/V Ratio :

• P/V Ratio = Contribution/Sales × 100

• P/V Ratio = S - V / S × 100

Profit volume Ratio is 10%

★ Break Even Point :

Break Even Point = FC / Profit Volume Ratio

$\rightarrow$ 35,000 / 10

$\rightarrow$ 3,50,000

∴ (Option) Rs. 3,50,000

Break Even Point = Rs. 3,50,000