BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

ACCOUNTING FOR MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Selling price per tonne is Rs. 69.50, variable cost per tonne is Rs. 35.50 and fixed cost is Rs. 18, 02, 000. Find out the BEP in units
A
49000
B
51000
C
53000
D
55000
Explanation: 

Detailed explanation-1: -Add the variable cost per unit to the contribution margin per unit. Now that you have the variable cost per unit and the contribution margin per unit, add them together to find your selling price per unit.

Detailed explanation-2: -Answer: Explanation: Selling price per jnit is 20 and variable cost is 12 contribution =sp-vc so, 20-12 = 8 .

Detailed explanation-3: -At 80% the fixed cost will be Rs. 9000 as the fixed cost remains constant throughout everything. Therefore, the Total cost at 80% is Rs. 25000.

Detailed explanation-4: -Solution(By Examveda Team) Fixed cost per unit changes according to volume of production. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

There is 1 question to complete.