Question

output 8000 units selling price in Rs 70per unit variable cost Rs 50 per unit total fixed cost Rs 6000
find out :- required to calculated the BEP in unit and in values

Answer 1

Explanation:

sales(8000x70)=560000

variable cost(8000x50)=400000

contribution (560000-400000)=160000

fixed cost=6000

pv ratio =contr/salesx100

160000/560000x100

=32%

bep=fixed cost/ pv ratio

=6000/32%

=18750