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A qs says that a company is setting up for the production of A & B. And per unit fc , vc costs and selling price is given. And it says that thr company is starting by producing inly A. We have to find th bep in units.
What i did was found the fc of a divided by contribution of a . But the ans is total fc of a and b divided by contribution of a.
Why did they take total fc when they are only producing a
It is difficult to answer without seeing the full question.
However it would seem from what you have written that the fixed costs per unit will have been calculated assuming that both products were produced in full (which is presumable what they intend to do eventually).
Whatever the total fixed costs are will remain the same whatever they end up producing – even if they only produce A.
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