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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
Direct exp. RSs.40,000
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Answer / deepak n. kolekar
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 |
Answer / hari sanku
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
Answer is Rs.225,000 BEP Sales
| Is This Answer Correct ? | 17 Yes | 1 No |
Answer / d.c. bansal
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 |
Answer / dharmesh sati
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 |
Answer / sumit sharma
EBP =SALES -(MATERIAL COST +FIXED EXPENSES+DIRECT
LABOUR+DIRECT EXP)
SO 300000-(100000+75000+60000+40000)
HENCE
= 300000-275000
= 25000
ITS THE RIGHT ANSWER
VOTE TO ME
| Is This Answer Correct ? | 1 Yes | 8 No |
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