Question
If Selling Price is 9 per unit, variable cost is 5 per
unit and fixed O/H absorption rate is 1.5 per unit, what is the break even point in Qty if the budgeted units are 1,00,000. Fixed O/H expenditure variance is 0.Solution
BE Qty = Fixed Cost/ Contribution per unit = 100000*1.5/4 = 37500 units 
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