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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 Posted / 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)
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