📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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

    Practice Next
    More Previous year papers Questions
    ask-question