Question

Q2 Selling price per unit-Rs.20
Variable cost-Rs.12
Total Fixed cost- Rs.96.000
Calculate Break even point in units and in Rs.
[10 Marks]
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Answer 1

Answer:

unit total 96/12 = 8

sales amount 20* 8 = 160

purchase cost 12* 8 = 96

gross profit 8*8= 64

Answer 2

Answer:

Explanation:

Selling price per jnit is 20 and variable cost is 12 contribution =sp-vc so,20-12 = 8 . To attain break even point which means 0.

Contribution =

- fc =96000

Bep = 0

To attain answer zero than 96000 would be contribution { 96000-96000 =0 }. 8= 96000 12 = ?

96000*12/8=144000. So variable cost is 144000. 20 ? = 240000.

Bep in units = fc/selling price per unit= 96000/20= 4800 units.

Bep in rs = 96000/96000 * 240000 = 240000 . So answer is bep in rs. 2,40,000. Bep in units= 4800 units.