Units of Sales 10 000 units Selling Price Rs 200 per unit Variable Cost Rs 120 per unit Fixed operat...........

Finance( Revenue Account ) Others

Units of Sales: 10,000 units

Selling Price: Rs. 200 per unit

Variable Cost: Rs. 120 per unit

Fixed operating Cost per unit of output: Rs. 60

Equity Share Capital: Rs. 3,00,000/-

16.25% Debt: Rs. 6,00,000/-

13% Preference Share Capital: Rs. 1,00,000/-

Tax rate: 35%

The Operating Break- Even point (in units), Financial Break- Even point (in units) and Overall Break - Even point (in units) will be:

7,000 units; 1,500 units; 9000 units

8,500 units; 1,400 units; 8000 units

7,500 units; 1,469 units; 8969 units

Cannot be calculated

Operating Break- Even point (in units) = Operating Fixed Cost/Contribution

= 6,00,000/80 = 7,500 units

Financial Break- Even point (in units) =

=(Interest) + (Preference Dividend/1-t) ÷ contribution per unit

97, 500 + 20,000/80 = 1,469 units

Overall Break – Even point (in Units) =

=Operating Fixed Cost +(Interest) + (Preference Dividend/1-t) ÷ contribution per unit

= 8969 units

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