Given a P/V ratio of 30%, fixed cost of ₹90,000, and a selling price of ₹100 per unit, find the break-even point (BEP) in units.

2500 units
3000 units
3500 units
4000 units

Correct answer: 3000 units

Solution

P/V ratio = Contribution/Sales = 30%, so contribution per unit = 30% of ₹100 = ₹30. Break-even point = Fixed cost / Contribution per unit = 90,000 / 30 = 3,000 units.

Related IBPS PO General Awareness questions

In a cycle manufacturing business, which method of costing is most appropriate?
If the desired profit is ₹20,000, fixed costs are ₹150,000, and the P/V ratio is 50%, what will be the required sales?
Statement: The Blue Whale Challenge is reportedly a suicide game in which the player is given certain tasks to complete over a period of 50 days, and the final task leads him or her to commit suicide. Taking a serious view of the Blue Whale Challenge game, the Madras High Court directed the Central and Tamil Nadu governments to explore possibilities of banning it. (I) The Bengal government is planning to introduce a separate chapter on "Responsible use of Internet" in the school syllabus in view of regular reports of school children in the state becoming victims of the deadly online game. (II) The judges suggested to the state DGP and Home Secretary that severe warning be issued to those who shared the "dangerous" online game with others. (III) The court stressed the need for creating awareness among students against playing such "dangerous" online games in educational institutions. The bench also said monitoring should be intensified to prevent further spread of the game through sharing. (IV) The state government will conduct workshops in different schools throughout the state to counsel students on the danger of playing games like Blue Whale either online or through mobile applications. Which of the following will be the preventive course of action for reducing the impact of the suicide game menace?
Which of the following can be inferred in the context of the phrase “queued the pitch”, as highlighted in the above passage?
Which of the following situations can be related to stagflation, as mentioned in the above passage?
What can be the possible inference drawn from the statement “Happiness is the end goal”, as highlighted in the above passage?

⚔️ Practice IBPS PO General Awareness free + battle 1v1 →