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      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 amount = Fixed cost/PV Ratio                         = 60000/40%                         = 1,50,000 BEP in units = BEP in amount/Sales price per unit                         = 1,50,000/40                         =3750 units

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