BEP= Fixed cost/Contribution*sales .Any other alternative
formula 4 BEP .
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Answer / zafar
BEP=Break Even Point
Formula is BEP(in units)= Fixed cost/contribution per unit
BEP(in amount)= Fixed cost/contribution per unit *selling
price per unit
OR=FIXED COST/TOTAL CONTRIBUTION*TOTAL SALES
OR= FIXED COST/P/V RATIO
Is This Answer Correct ? | 34 Yes | 3 No |
Answer / sonal
fixed cost is equal to actual sales less margin of safety,
whereas margin of safety is calculated as profit /p/v ratio
Is This Answer Correct ? | 1 Yes | 3 No |
A company maintains a margin of safety of 25% on its current sales and earns a profit of Rs. 30 lakhs per annum. If the company has a profit volume (P/V) ratio of 40%, its current sales amount to A. Rs. 200 lakhs; B. Rs. 300 lakhs; C. Rs. 325 lakhs; D. None of the above.
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