Answer :
| Monthly BEP | |
| In units | 1800 |
| In dollar | 504000 |
Working notes for the above anser is as follow
We have provided with the information as under
product whose selling price is $280.00
whose variable expense is $168.00 per unit
fixed expense is $201,600 per month
BEP = Fixed cost / Contribution
contribution we will find as follow
| Particular | $ Per unit |
| Selling price (A) | 280 |
| variable cost (B) | 168 |
| Contribution (A-B) | 112 |
So break even point is = $ 201600 / 112
= = 1800 units
| Monthly BEP | |
| In units | 1800 |
| In dollar | 504000 |
