Variable cost 40
Fixed cost 10
Budgeted sales 12000
C/S ratio 60%
How much is breakeven point in units?
Can somebody help me please with this question?asap
I’m not going to simply tell you the answer to a relatively straightforward question just to (perhaps) help your with your homework.
Let me know some of your thought processes. Show me the answer and how you got there and I’ll help.
Fixed cost = contribution= 10
You got the right answer, but I’m not sure it it’s luck or judgement.My way would be something like:
If the C/S ratio is 0.6, the VC/S ratio must be 0.4
VC = 40, so VC/S = 40/S = 0.4.
SP must be 100, VC, 40 and contribution 60
Total fixed cost budgeted = 12,000 x 10 = 120,000
BEP = 120,000/60 = 2000.
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