Question

If fixed costs are R$450,000, the unit-to-sale ratio of 70%, the value of sales that does...

If fixed costs are R$450,000, the unit-to-sale ratio of 70%, the value of sales that does not bring profits or losses to the company is......?

Homework Answers

Answer #1
Fixed Cost                       4,50,000
Unit to Sale Ratio 70%
PV Ratio/ Contributaion Ratio (1-Variable Cost/ Sales) (1-.70)
PV Ratio 30%
BEP In Value Fixed Cost/ PV ratio
(450000/30%)
BEP                     15,00,000

Hence the value of sales that does not bring profits or losses to the company is 15,00,000/-

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