Question
A firm sells Product A (₹50/unit, VC ₹30/unit) and
Product B (₹100/unit, VC ₹60/unit) in ratio 2:3. Fixed costs = ₹4 lakh. Calculate BEP sales value.Solution
• Contribution per unit A = ₹20; B = ₹40. • Weighted avg contribution per unit = (2×20 + 3×40) / 5 = ₹32. • BEP units = ₹4,00,000 / 32 = 12,500 composite units. • Avg selling price/unit = (2×50 + 3×100) / 5 = ₹80. • BEP sales = 12,500 × ₹80 = ₹10 lakh.
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