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%?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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