Question
What would be the break even units if the Fixed Cost is
Rs.1,00,000 and PV ratio is 25%. The company sells its product at Rs.60 per unit.Solution
BEP in Units = Fixed Cost / Contribution per unit 1,00,000/15 =6666.66 (6667 Units approx.) 4,00,000 / 60= 6667 Contribution per unit = SPPU * PV ratio = 60 Rs * 25% = 15 Rs Alternatively, Calculated BEP in Value: FC/ PV ratio 1,00,000 / 25%= 4 lakhs sales Now divide the BEP sales value by selling price per unit to arrive at BEP in units. 4,00,000/60 = 6666.66
Insurance is, thus, a financial tool specially created to reduce the financial impact of unforeseen events and to create______.
_______ is basically a trade in which imported goods are re-exported with or without any additional processing or repackaging.
What is the insurance of human life values against the risks of death, injury, illness or against expenses incidental to the latter?
The first motor vehicle insurance policy was issued in the UK in:
An adjustable life insurance under which premiums and coverage are adjustable, company’s expenses are not specifically disclosed to the insured but a ...
What is NOT an element of an insurance contract?
2000 factories require a Sum Insured of Rs.10 crores each. Statistically, we know that 2 factories get destroyed by fire each year. However, we do not ...
Nethanna Ku Bima insurance scheme is related which of the following state?
A form of whole-life insurance with a predefined number of premiums to be paid is known as?
A policy that combines protection against premature death with a savings account that can be invested in stocks, bonds, and money market mutual funds at...
