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]​

Answer 1

Hello friend here is your answer below,

Given values are,

Selling price per unit is Rs 20

Variable cost Rs 12

Total Fixed cost Rs 96000

we know that break even point is

BEP = Fixed cost/(Selling price - Variable cost)

so BEP = 96000/(20 - 12)

BEP = 96000/8

BEP =12000 Units

In Rs.

BEP =( Fixed cost×Selling cost ) / (Selling cost - Variable cost)

BEP =( 96000×20) /(20-12)

BEP = (96000×20) / 8

BEP = 12000×20

BEP = Rs 240000

I hope that helps you,.

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