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    • Question

       A company has a Profit-Volume (P/V) Ratio of 30%, a

      selling price of ₹100 per unit, and fixed costs of ₹90,000. What is the Break-Even Point (BEP) in units?
      A 2,000 units Correct Answer Incorrect Answer
      B 2,500 units Correct Answer Incorrect Answer
      C 3,000 units Correct Answer Incorrect Answer
      D 3,500 units Correct Answer Incorrect Answer
      E 4,000 units Correct Answer Incorrect Answer

      Solution

      he Break-Even Point (BEP) in units is calculated by dividing the fixed costs by the contribution margin per unit. Given a P/V Ratio of 30%, the contribution margin is 30% of the selling price (₹100), which equals ₹30 per unit. BEP in units = 90,000 / 30  = 3000 units

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