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    Question

    If the fixed cost is Rs.43,500 and the company, the

    contribution is Rs.500 per unit, how many unit sales would a company need to do to earn a profit of Rs.15,000?
    A 30 units Correct Answer Incorrect Answer
    B 57 units Correct Answer Incorrect Answer
    C 87 units Correct Answer Incorrect Answer
    D 100 units Correct Answer Incorrect Answer
    E 117 units Correct Answer Incorrect Answer

    Solution

    BEP = (Fixed cost + Profit)/ contribution per unit ┬а┬а┬а┬а┬а┬а┬а┬а┬а┬а┬а = (43500 + 15000)/500 ┬а┬а┬а┬а┬а┬а┬а┬а┬а┬а┬а = 117 units

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