Same data: BEP sales value equals:
A₹4,00,000
B₹6,00,000
C₹10,00,000
D₹8,00,000
Answer & Solution
Correct answer: C. ₹10,00,000
1. P/V ratio = Contribution / Sales = 40 / 100 = 40%.
2. BEP sales = Fixed cost / P/V ratio = 4,00,000 / 0.40.
3. = ₹10,00,000.
4. Alternatively, BEP units × Selling price = 10,000 × 100 = ₹10,00,000.
_Source: ICAI BoS Inter Paper 3, Ch 14 "Marginal Costing", §14.5 Illus 6b_
Related questions
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