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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

Answer Posted / 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

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