Selling price ₹100, variable cost ₹60, fixed cost ₹4,00,000. BEP in units is:
A8,000
B10,000
C12,000
D6,000
Answer & Solution
Correct answer: B. 10,000
1. Contribution per unit = 100 − 60 = ₹40.
2. BEP units = Fixed cost / Contribution per unit = 4,00,000 / 40.
3. = 10,000 units.
4. The other options arise from arithmetic errors or omitting the contribution step.
_Source: ICAI BoS Inter Paper 3, Ch 14 "Marginal Costing", §14.5 Illus 6_
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