Match the following: List-I (Items of BEP) List-II (Formula) a. BEP 1. FCP/V Ratio b. Contribution 2. Sales × P/V Ratio c. Margin of safety 3. ProfitP/V Ratio d. Calculation of changes in BEP if non-variable costs are increased/decreased 4. Change in Non-variable CostsP/V Ratio

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This question belongs to Management Managerial Economics

Managerial Economics

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Match the following:

List-I (Items of BEP) List-II (Formula)

a. BEP 1. $$\frac{{{\text{FC}}}}{{{\text{P/V Ratio}}}}$$

b. Contribution 2. Sales × P/V Ratio

c. Margin of safety 3. $$\frac{{{\text{Profit}}}}{{{\text{P/V Ratio}}}}$$

d. Calculation of changes in BEP if non-variable costs are increased/decreased 4. $$\frac{{{\text{Change in Non-variable Costs}}}}{{{\text{P/V Ratio}}}}$$

A) a-4, b-3, c-1, d-2 B) a-1, b-4, c-3, d-2 C) a-1, b-2, c-3, d-4 D) a-1, b-3, c-2, d-4

Answer & Solution

Correct Answer: Option C

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List-I (Items of BEP)	List-II (Formula)
a. BEP	1. $$\frac{{{\text{FC}}}}{{{\text{P/V Ratio}}}}$$
b. Contribution	2. Sales × P/V Ratio
c. Margin of safety	3. $$\frac{{{\text{Profit}}}}{{{\text{P/V Ratio}}}}$$
d. Calculation of changes in BEP if non-variable costs are increased/decreased	4. $$\frac{{{\text{Change in Non-variable Costs}}}}{{{\text{P/V Ratio}}}}$$