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2 cards from this section. Quick, good the night before a test.
If the fixed cost is ₹60,000 and contribution per unit is ₹120, how many units must be sold to break even?
Use the break-even formula: Fixed Costs / Contribution per Unit.
Calculate contribution per unit if selling price is ₹300 and variable cost is ₹180.
Contribution is selling price minus variable cost.
What is the formula for calculating the Break-even Point in units?
Recall that BEP relates fixed costs to the contribution made by each unit.
True or False: The contribution margin is calculated by subtracting fixed costs from selling price.
Focus on what costs are involved in the calculation.
A company incurs fixed costs of ₹60,000. Their product has a selling price of ₹450 and a variable cost of ₹270. Determine the break-even point in units and total revenue.
Calculate contributions first, then apply the BEP formula.
If a bakery has fixed costs of ₹80,000 and sells cookies for ₹200 each with variable costs of ₹80, find how many cookies they need to sell to achieve a profit of ₹40,000.
Sum fixed costs and desired profit before dividing by contribution.
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