Question

The folllowing data is given related to a small manufacturing company:
Sales - ₹1000000
Fixed cost - ₹90000
Variable cost - ₹650000
Whats is the value of break even point sale?

• A. ₹280000
• B. ₹257143
• C. ₹260000
• D. ₹742857

Answer 1

The correct option is B ₹257143

We know that,
${\left(\frac{P}{V}\right)}_{ratio}=\frac{(S-V)}{S}\times 100$% = $\frac{(100000-650000)}{1000000}\times 100$%
= 35%
Question analytics
$BEP=\frac{Fixedcost}{{\left(\frac{P}{V}\right)}_{ratio}}$
$(BEP{)}_{sales}=$ ₹257143