# Break-even Analysis - Finance (MCQ) Questions and answers

1)   Calculate B.E.P capacity if Fixed cost is Rs 50,000, percentage of variable cost is 66 2/3% and capacity is Rs 3,00,000.

a. 25%
b. 30%
c. 50%
d. None of the above
 Answer  Explanation ANSWER: 50% Explanation: No explanation is available for this question!

2)   Calculate margin of safety if sales is Rs 3,00,000 and B.E.P is Rs 4,50,000.

a. Rs 1,00,000
b. Rs 1,50,000
c. Amount of sales < B.E.P, therefore no margin of safety
d. None of the above
 Answer  Explanation ANSWER: Rs 1,00,000 Explanation: No explanation is available for this question!

3)   Given Sales in first and second year is Rs 80,000 and Rs 90,000 respectively. Also, profit is Rs 10,000 and Rs 14,000 respectively. What is the break-even point in rupees?

a. Rs 10,000
b. Rs 24,000
c. Rs 55,000
d. None of the above
 Answer  Explanation ANSWER: Rs 55,000 Explanation: No explanation is available for this question!

4)   What will be sales in rupees for desired profit if fixed cost is Rs 30,000, desired profit is Rs 15,000 and P/V ratio is 30%?

a. Rs 1,50,000
b. Rs 1,00,000
c. Rs 2,00,000
d. None of the above
 Answer  Explanation ANSWER: Rs 1,50,000 Explanation: No explanation is available for this question!

5)   What will be sales in units if fixed cost is Rs 50,000, Contribution per unit is Rs 60 and desired profit per unit is Rs 10.

a. 6,000 units
b. Rs 1,000
c. 1,000 units
d. Rs 6,000
 Answer  Explanation ANSWER: 1,000 units Explanation: No explanation is available for this question!

6)   Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6. If fixed cost increase by 10% , B.E.P will

a. Decrease by 2,500 units
b. No change
c. Increase by 2,500 units
d. None of the above
 Answer  Explanation ANSWER: Increase by 2,500 units Explanation: No explanation is available for this question!

7)   Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.

a. Rs 37,500
b. Rs 33,000
c. Rs 38,000
d. None of the above
 Answer  Explanation ANSWER: Rs 37,500 Explanation: No explanation is available for this question!

8)   What will be the sales amount required to earn a profit of Rs 4,00,000, if fixed cost is Rs 80,000, direct material is Rs 5 per unit, direct labor Rs 2 per unit, direct overhead 100% of direct labor and selling price is Rs 12 per unit.

a. Rs 19,20,000
b. Rs 3,20,000
c. Rs 12,90,000
d. None of the above
 Answer  Explanation ANSWER: Rs 19,20,000 Explanation: No explanation is available for this question!

9)   Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16.

a. 5,000 units
b. Rs 5,000
c. Rs 10,000
d. 10,000 units
 Answer  Explanation ANSWER: 5,000 units Explanation: No explanation is available for this question!

10)   What is Margin of Safety if Sales is 20,000 units and B.E.P is 15,000 units.

a. 35,000 units
b. 5,000 units
c. Rs 5,000
d. Rs 35,000
 Answer  Explanation ANSWER: 5,000 units Explanation: No explanation is available for this question!

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