Ascertain the B.E.P. in units from the following: Selling Price Rs. 15 p.u. Variable Costs Rs. 8

Question:

Ascertain the B.E.P. in units from the following:

Selling Price Rs. 15 p.u.

Variable Costs Rs. 8 p.u.

Fixed Costs Rs. 14,000 Units Produced 6,000 Units

[Ans.: B.E.P. = 2,000 Units]

[Hint: B.E.P. (Units) =

FC SP,VC SP-VC'

 (p. u.)]

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