BEP Sales is Rs. 225000/- Sales-Direct Cost = Contribution i.e. Rs.100000/

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

Question Posted / h.r. sreepada bhagi

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Answer Posted / h.r. sreepada bhagi

BEP Sales is Rs. 225000/-
Sales-Direct Cost = Contribution i.e. Rs.100000/-
Fixed Cost x present Sales / Contribution, or

Fixed Cost / PV Ratio (i.e. 33.33%)
PV Ratio = Contribution / Present Sales.

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