Question

    Selling price per unit = ₹50, Variable cost = ₹30,

    Fixed cost = ₹1,00,000. Calculate break-even sales and contribution margin ratio.
    A ₹2,50,000; 30% Correct Answer Incorrect Answer
    B ₹5,00,000; 35% Correct Answer Incorrect Answer
    C ₹2,00,000; 25% Correct Answer Incorrect Answer
    D ₹2,50,000; 40% Correct Answer Incorrect Answer
    E ₹3,00,000; 45% Correct Answer Incorrect Answer

    Solution

    CM/unit = ₹20; BEP units = 1,00,000/20 = 5,000 units = 5,000×₹50 = ₹2,50,000; CM ratio = 20/50 = 40%

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