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
B BEP = 5,000 units; Sales for ₹3L profit = ₹40,00,000
C BEP = 6,000 units; Sales for ₹3L profit = ₹37,50,000
D BEP = 4,800 units; Sales for ₹3L profit = ₹38,00,000
E BEP = 5,500 units; Sales for ₹3L profit = ₹42,00,000
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