how to calculate BEP in this problem?
Sales Rs.3,00,000
Fixed Exp. Rs. 75,000
Direct Material.Rs.1,00,000
Direct Labour Rs.60,000

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how to calculate BEP in this problem? Sales Rs.3,00,000 Fixed Exp. Rs. 75,000 Direct Materi..

Dear All,

The Solution is

Pariticulars Actuals BEP
Sales (100%) 3,00,000/- 2,25,000/-
Less: Variable Cost(WN1) 2,00,000/- 1,50,000/-
= Contribution 1,00,000/- 75,000/-
Less: Fixed Cost 75,000/- 75,000/-
= Profit / (Loss) 25,000/- NIL

Working Note
1) Variable Cost = Direct Material + Direct Labour + Direct
exp
Variable Cost = 1,00,000+60,000+40,000
= 2,00,000/-

So BEP means when their is no profit no loss.

 Is This Answer Correct ? 27 Yes 2 No

how to calculate BEP in this problem? Sales Rs.3,00,000 Fixed Exp. Rs. 75,000 Direct Materi..

Sales 300,000
Fixed Expenses 75,000
Variable Expenses 200,000(100,000+60,000+40,000)

Contribution =Sales-variable cost
=300,000-200,000
=100000
BEP =Fixed cost/contribution*Sales
=75,000/100,000*300,000
=225,000

 Is This Answer Correct ? 16 Yes 1 No

how to calculate BEP in this problem? Sales Rs.3,00,000 Fixed Exp. Rs. 75,000 Direct Materi..

BEP is point of Sales when there will be no profit no loss.
In your case BEP Sales will be Rs.225000.
Accordingly your direct expenses will be Rs. 150000
[(100000+60000+40000)/300000*225000].
And profit will be nil (225000-150000-75000)

 Is This Answer Correct ? 5 Yes 1 No

how to calculate BEP in this problem? Sales Rs.3,00,000 Fixed Exp. Rs. 75,000 Direct Materi..

BEP mean Break Even Point.

& In your Problem BEP when company's Expense & Income are
equal mean no profit & no loss so your case Cost is Rs.
275000 of your Break Even Point is 275000 & you have made
profit of Rs. 25000

 Is This Answer Correct ? 8 Yes 5 No

how to calculate BEP in this problem? Sales Rs.3,00,000 Fixed Exp. Rs. 75,000 Direct Materi..

difranc in Rs.25000

 Is This Answer Correct ? 6 Yes 7 No

how to calculate BEP in this problem? Sales Rs.3,00,000 Fixed Exp. Rs. 75,000 Direct Materi..

EBP =SALES -(MATERIAL COST +FIXED EXPENSES+DIRECT
LABOUR+DIRECT EXP)
SO 300000-(100000+75000+60000+40000)
HENCE
= 300000-275000
= 25000
VOTE TO ME

 Is This Answer Correct ? 1 Yes 8 No

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