Question

sales equals to 1 lakh fixed cost equals to 20,000 variable cost equal to 60000 then calculate P/V ratio and bep​

Answer 1

Answer:

p/v ratio=40%

Bep= 50%

Explanation:

SALES 100000

*(-)VC. 60000

*CON. 40000

*(-)F.C. 20000

PROFIT 20000

P/ V RATIO=CONTRIBUTION ÷ SALES

40000÷100000

40%

BEP = FC÷CONTRIBUTION

20000÷40000

50%

* VARIABLE COST

* CONTRIBUTION

* FIXED COST

Answer 2

P/V ratio and B.E.P

Explanation:

Given:

Sales = 100,000

Fixed cost = 20,000

Variable cost = 60,000

Computation of Contribution:

Contribution = Sales - Variable cost

Contribution = 100,000 - 60,000

Contribution = 40,000

Computation of P/V ratio:

P/V ratio = Contribution / Sales

P/V ratio = 40,000 / 100,000

P/V ratio = 0.40

P/V ratio = 40%

Computation of B.E.P:

B.E.P = Fixed cost / Contribution

B.E.P = 20,000 / 40,000

B.E.P = 0.50

B.E.P = 50%

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