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    Question

    A manufacturing company sells a product for ₹500 per

    unit. The variable cost per unit is ₹300, and the fixed costs are ₹12,00,000 annually. Management wants to assess the minimum number of units to be sold to avoid losses. Additionally, they want to know the sales revenue needed to achieve a profit of ₹3,00,000.
    A BEP = 4,000 units; Sales for ₹3L profit = ₹35,00,000 Correct Answer Incorrect Answer
    B BEP = 5,000 units; Sales for ₹3L profit = ₹40,00,000 Correct Answer Incorrect Answer
    C BEP = 6,000 units; Sales for ₹3L profit = ₹37,50,000 Correct Answer Incorrect Answer
    D BEP = 4,800 units; Sales for ₹3L profit = ₹38,00,000 Correct Answer Incorrect Answer
    E BEP = 5,500 units; Sales for ₹3L profit = ₹42,00,000 Correct Answer Incorrect Answer

    Solution

    • Contribution/unit = 500 – 300 = ₹200. • BEP units = 12,00,000 ÷ 200 = 6,000 units. • Units for ₹3L profit = (12,00,000 + 3,00,000) ÷ 200 = 7,500 units → Sales = 7,500 × 500 = ₹37,50,000 

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