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