1.

Calculate Break even salesVariable cost = 800000fixed cost = 300000profit = 100000also please explain how you got the answer. Thank you :) ​

Answer»

Answer:

BEP = 9,00,000

Explanation:

SALES - VARIABLE cost = contribution

or fixed cost + PROFIT = contribution

or sales - variable cost = fixed cost + profit

contribution = fixed cost + profit

= 3,00,000 + 1,00,000 = 4,00,000

sales = contribution + variable cost

= 4,00,000 + 8,00,000 = 12,00,000

PVR = contribution / sales × 100

= 4,00,000 / 12,00,000 × 100 = 33.3333%

BEP = fixed cost / PVR

= 3,00,000 / 33.3333% = 9,00,000



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