Question

ws
20) What will be the B.E.P if Variable cost ratio
is 70% and Fixed cost is Rs 36,000.
a. Rs 3,20,000
b. Rs 2,20,000
c. Rs 1,20,000
d. None of the above​

Answer 1

Answer:

none of the above means no answer

Answer 2

Answer:

The answer is option C, Rs 1,20,000

Here's the explanation:

first we'll find PV ratio from the given variable cost ratio,

PV ratio= 100- Variable cost ratio = 30%

Now, BEP = Fixed cost / PV ratio = 36,000/30 × 100 = Rs 1,20,000