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    Question

    What will be the BEP in units when the sales price is

    Rs.40 per unit, fixed cost is Rs.60000 and the PV ratio is 40%?
    A 1500 units Correct Answer Incorrect Answer
    B 600 units Correct Answer Incorrect Answer
    C 3750 units Correct Answer Incorrect Answer
    D 1000 units Correct Answer Incorrect Answer
    E 2550 units Correct Answer Incorrect Answer

    Solution

    BEP (in Rs.) = Fixed cost/PV ratio             = 60,000/40%             = 15,00,000   BEP in units = 15,00,000/40 = 3750 units

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