1 You are given the following information

Particulars Amount(Rs)
sales Rs.10,00,000
Fixed Expenses Rs.2,00,000
Variable Expenses Rs.3,00,000

You are required to Calculate

a) BEP
b) P/V Ratio
c) Margin of Safety
d) Profit
e) Sales required to earn a profit of Rs. 2, 50,000.
2 You are required to calculate
a) Margin of Safety
b) Total sales
c) Variable cost from the following figures;
Fixed costs Rs. 12,000, Profit Rs. 1,000, Break-Even Sales Rs.60,000
3 A company makes a single product with a sales price of Rs.10 and a variable cost of
Rs. 6 per unit. Fixed costs are Rs. 60,000. Calculate
a) Breakeven point in Rs and units
b) P/V Ratio
c) What number of units will need to be sold at achieved a profit of Rs 10,000?
d) What level of sales will achieve a profit of Rs 30,000?
4 You are given the following information about two companies in 2000

Particulars Company A Company B

sales Rs.50,00,000 Rs.50,00,000
Fixed Expenses Rs.12,00,000 Rs.17,00,000
Variable Expenses Rs.35,00,000 Rs.30,00,000

You are required to Calculate (For Both Companies)

a) BEP
b) P/V Ratio
c) Margin of Safety
5 A company reported the following results for two periods
Period Sales Profit
I Rs.20,00,000 Rs.2,00,000
II Rs.25,00,000 Rs.3,00,000
Ascertain the BEP, P/V Ratio, Fixed cost and Margin of Safety.

A company reported the following results for two periods.

Period Sales Profit
I Rs.40,00,000 Rs.4,00,000
II Rs.50,00,000 Rs.6,00,000
 Ascertain the BEP, P/V Ratio, Fixed cost and Margin Of Safety
7 Sales are Rs. 2,20,000 yielding a profit of Rs. 8,000 in period-I; Sales are Rs. 3, 00,000 with a
profit of Rs. 24,000 in period-II. Determine BEP and Fixed Cost.
8 The following data is obtained from the records of M/S ABC & Co.

Period-I Period-II
Sales Rs. 6, 50,000 Rs. 8, 50,000
Profit Rs. 1, 00,000 Rs. 1, 75,000

Calculate
i. P/V Ratio
ii. Break even sales
iii. Sales required to earn a profit of Rs. 2,00,000
iv. Profit when sales are Rs. 10,00,000
9 The P/V Ratio of Matrix Books Ltd is 40% and the Margin of safety is 30%. You are
required to work out the BEP and Net Profit, if the Sales Volume is Rs.14,000
10 The P/V Ratio of Mc graw hill Ltd is 30% and the Margin of safety is 20%. You are required
to work out the BEP and Net Profit, if the Sales Volume is Rs.50, 000
11 The information about Raj and Co., are given below.
i) Profit-Volume Ratio (P/V Ratio) is 20%
ii) Fixed costs Rs. 36,000
iii) Selling price per Unit Rs. 150

Calculate:
a. BEP (in Rs.)
b. BEP (in Units)
c. Variable Cost per Unit

12 The information about Raj and Co., are given below.

i) Profit-Volume Ratio (P/V Ratio) is 30%
ii) Fixed costs Rs. 30,000
iii) Selling price per Unit Rs. 200

Calculate:
i) BEP (in Rs.)
ii) BEP (in Units)
iii) Variable Cost per Unit

13 You are required to calculate

a) Margin of Safety
b) Total sales
c) Variable cost from the following figures;
Fixed costs Rs. 20,000, Profit Rs. 5,000, Break-Even Sales Rs.60,000
14 Calculate i) p/v ratio ii) breakeven point iii) margin of safety iv) sales required to earn a
profit of Rs.50,000. From the following information.
Sales Rs. 5,00,000 fixed cost Rs. 1,00,000 variable cost Rs. 2,00,000
BREAK EVEN POINT PROBLEMS

1 A firm has a fixed cost of Rs.10,000, selling price per unit is Rs. 5 and variable cost per unit
is Rs. 3. Determine break-even point in terms of units and Rs.
2 Company A and Company B both under the same management makes and sells the same
type of product. Their budgeted profit and loss accounts are follows:

Particulars Company A Company B

Sales 3,00,000 3,00,000
Variable cost 2,40,000 2,00,000
Fixed cost 30,000 70,000
Profit 30,000 30,000
Calculate for both the company:
i. P/V ratio
ii. BEP
iii. Margin of safety
3. Given the following information: selling price per unit Rs.100,variable cost per unit Rs.50
fixed cost Rs.100,000 total sales=3,60,000. find out: p/v ratio, BEP in units and value, margin
of safety

4.

5. Assuming that the cost structure and selling prices remain the same in periods I
and II find out:
i. P/V ratio
ii. Break even sales
iii. Profit when sales are 1,00,000
iv. Sales required to earn a profit of Rs.20,000
v. Margin of safety in period I and II
Period Sales(Rs) Profit(Rs)
I 1,20,000 9,000
II 1,40,000 13,000

6. A company makes a single product with a sale price of Rs.10 and a variable cost of Rs.6
per unit. Fixed costs are Rs.6000. calculate:
i. Number of units to break-even
ii. Sales at break-even
 iii. P/v ratio (in terms of percentage)
iv. What number of units will need to be sold to achieve a profit of Rs.10000
7. A firm has a fixed cost of Rs.5,00,000, selling price per unit is Rs.25 and variable cost per
unit is Rs.5. Maximum capacity output is 5,00,000 units per year. Calculate Break even
output and margin of safety, contribution per unit, desired sales to earn a profit of Rs.
60, 000.

8. A firm has a fixed cost of Rs.50,000, selling price per unit is Rs.50 and variable cost per
unit is Rs.25. Present level of production is 3500 units:
i. Determine break-even point in terms of volume and sales value
ii. Calculate margin of safety
9.
From the following data, you are required to calculate breakeven point and net sale value at
this point:
Particulars Rs.
Direct Material Cost per unit 10
Direct Labour Cost per unit 5
Fixed Overhead 50000
Variable Overheads @ 60% on Direct Labour
Selling Price per unit 25
Trade Discount 4%
If sales are 10% and 25% above the break even volume, determine the net profits

10. From the following data, you are required to calculate:

i. P/V Ratio
ii. Breakeven sales with the help of P/V Ratio
iii. Sales required to earn a profit of Rs.4, 50, 000
Fixed Expenses = Rs.90, 000
Variable cost per unit
Direct material = Rs. 5, Direct labour = Rs.2,
Direct Overheads = 100% of direct labour.
Selling price per unit = Rs.12.

11.

12. Confrigity.co manufacture electronic components, the fixed cost incurred is Rs.2,00,000,
direct material cost per unit Rs.70, direct labor cost Rs.30 per unit. The selling price per unit
is Rs.300. The company produced and sold 2000 units in a year. Calculate the company’s
Breakeven point and margin of safety.