Numerical - Calculate B.E.P in units & amount for given selling price, fixed & variable cost

Q.  Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit.
- Published on 15 Sep 15

a. Rs 40 per unit, Rs 2,00,000
b. Rs 50 per unit, Rs 10,00,000
c. Rs 20 per unit, Rs 1,00,000
d. None of the above

ANSWER: Rs 20 per unit, Rs 1,00,000

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    Discussion

  • Dr Paritosh Dube   -Posted on 09 Sep 20
    wrong question and answer
    if question is correct and option too than your options should be
    a. 4000 unit, Rs 2,00,000
    b. 5000 units, Rs 250000
    c. 2000 units, Rs 1,00,000
    d. None of the above

    because BEP= F.C/ (S.P-V.C)= 40000/(50-30)= 40000/20=2000 units and sales at this level is 2000*50=10000

    if options are correct and answer too than question should be

    what is contribution margin and sales at break even point

    Regards
    Dr Paritosh Dube

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