Question

if bep sales is 60% of current sales and profit is 4000 then what is contribution​

Answer 1

Answer:

The contribution is 6400

Explanation:

The contribution will be given by

(60% of 4000) + 4000

$(\frac{60}{100}*4000)+4000$

which is equal to 6400

In accounting, the phrase "break-even point" (BEP) describes the scenario in which a company's revenues and expenses were equal within a particular accounting period. It denotes that the corporation "broke even," meaning there were no net earnings nor losses. BEP can also be used to describe the levels of revenue required to cover the costs incurred during a certain time period.

The accounting break-even point and the financial break-even point differ in a number of ways.

On the one hand, calculating the accounting break-even point is the simplest and most popular way to determine earnings. It may be simply determined by adding up all of the costs associated with a specific manufacturing and figuring out how many units of the final product must be sold to make up the difference.

The calculation of the financial break-even point, however, is more challenging because it employs distinct metrics despite being the same idea. Instead of focusing on a specific product or unit count, it discusses a company's earnings, especially how much it must make for its earnings per share to equal zero.

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