"What is the company's breakeven point:
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units. "

A) 8,000 units B) 8,333 units C) 10,000 units D) 10,909 units

Answer & Solution

Correct Answer: Option D

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1 Comment

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Anita Saini 7 years ago

Cal fixed cost =4*10000+.80*10000=48000
Cal variable cost p.u =1.20+.40=1.60
Cal contribution p.u =sales-vc p.u
6-1.60=4.40 cont. P.u
Cal BEP unit =fc/cont. P.u
BEP unit sales=48000/4.40=10909

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What is the company's breakeven point Selling price - Rs 6...

"What is the company's breakeven point: Selling price - Rs 6 per unit Variable production cost - Rs 1.20 per unit Variable selling cost - Rs 0.40 per unit Fixed production cost - Rs 4 per unit Fixed selling cost - Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. "

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Related Questions on Costing

"What is the company's breakeven point:
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units. "