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    5. What will be the BEP in units when the sales price is Rs.40 per unit, fixed cost is Rs.60000 and the

    Question

    What will be the BEP in units when the sales price is

    Rs.40 per unit, fixed cost is Rs.60000 and the PV ratio is 40%?
    A 1500 units Correct Answer Incorrect Answer
    B 600 units Correct Answer Incorrect Answer
    C 3750 units Correct Answer Incorrect Answer
    D 1000 units Correct Answer Incorrect Answer
    E 2550 units Correct Answer Incorrect Answer

    Solution

    BEP (in Rs.) = Fixed cost/PV ratio             = 60,000/40%             = 15,00,000   BEP in units = 15,00,000/40 = 3750 units

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