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 Posted / 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 |
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