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?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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