Find out Break-even Point from the following information: 1. Fixed cost = 40,000 Variable cost = ₹ 2 per unit Sales Price = ₹ 4 per unit

B.E.P(in unit)= Fixrd cost Variable cost per uuit -Selling price per unit B.E.P(in unit)=40,000 4-2 B.E.P(in unit=40,000 2 B.E.P(in unit)=20,000 units B.E.P on sales=40,000 2 4 B.E.P on sales=20,000 4 B.E.P on sales=₹ 80,000.

Find out Break-even Point from the following information: 1. Fixe…

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Question

Find out Break-even Point from the following information:

Fixed cost = 40,000

Variable cost = ₹ 2 per unit
Sales Price = ₹ 4 per unit

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Answer

$\text{B.E.P}(\text{in unit})=\frac{\text{Fixrd cost}}{\text{Variable cost per uuit -Selling price per unit}}$$\text{B.E.P}(\text{in unit})=\frac{40,000}{4-2}$
$\text{B.E.P}(\text{in unit}=\frac{40,000}{2}$
$\text{B.E.P}(\text{in unit})=20,000\text{ units}$
$\text{B.E.P}\text{ on sales}=\frac{40,000}{2}\times4$
$\text{B.E.P}\text{ on sales}=20,000\times4$
$\text{B.E.P}\text{ on sales}=₹ 80,000$.