Following information is given to you:

Sales	Rs. 4,00,000
Fixed cost	Rs. 1,80,000
Variable cost	Rs. 2,00,000

Calculate Break Even Point (BEP) of sales

o calculate the Break Even Point (BEP) in terms of sales, we use the formula:

BEP (Sales)
=
Fixed Costs
Contribution Margin Ratio
BEP (Sales)=
Contribution Margin Ratio
Fixed Costs
​

Step 1: Calculate the Contribution Margin
The Contribution Margin (CM) is given by:

CM
=
Sales
−
Variable Costs
CM=Sales−Variable Costs
CM
=
4
,
00
,
000
−
2
,
00
,
000
=
2
,
00
,
000
CM=4,00,000−2,00,000=2,00,000
Step 2: Calculate the Contribution Margin Ratio
The Contribution Margin Ratio (CMR) is given by:

CMR
=
Contribution Margin
Sales
CMR=
Sales
Contribution Margin
​

ext{CMR} = rac{2,00,000}{4,00,000} = 0.50 , ext{(or 50%)}
Step 3: Calculate BEP (Sales)
Now, calculate BEP (Sales) using the formula:

BEP (Sales)
=
Fixed Costs
CMR
BEP (Sales)=
CMR
Fixed Costs
​

BEP (Sales)
=
1
,
80
,
000
0.50
=
3
,
60
,
000
BEP (Sales)=
0.50
1,80,000
​
=3,60,000
The BEP for this example is not matching the provided options. Could you clarify the data or the problem further?