PV Ratio is 40 Selling price is 40 Fixed cost is 60 000 Find BEP in units fixed cost contribution pe...........

Accountancy (Phase -I & II) Others

PV Ratio is 40%, Selling price is 40. Fixed cost is 60,000. Find BEP in units: (fixed cost / contribution per unit)

3750

3000

4000

3600

Let’s break it down step by step:

- PV Ratio (Profit/Volume Ratio) = Contribution/Sales x 100

- You’ve got a PV Ratio of 40%. That means for every ?40 of sales, the contribution is ?16 (because 40% of 40 = 16).

- Contribution per unit = ?16.

- Fixed Cost = ?60,000.

- BEP (Break Even Point in units) = Fixed Cost / Contribution per unit = 60,000 / 16 = 3,750 units.

So, the correct BEP units is 3,750 units.

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