MCQ ON BREAK-EVEN ANALYSIS

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 MCQ ON BREAK-EVEN ANALYSIS 



1)   Given Sales in first and second year is Rs 80,000 and Rs 90,000 respectively. Also, profit is Rs 10,000 and Rs 14,000 respectively. What is the break-even point in rupees?


a. Rs 10,000

b. Rs 24,000

c. Rs 55,000

d. None of the above


ANSWER: Rs 55,000


2)   What will be sales in rupees for desired profit if fixed cost is Rs 30,000, desired profit is Rs 15,000 and P/V ratio is 30%?


a. Rs 1,50,000

b. Rs 1,00,000

c. Rs 2,00,000

d. None of the above


ANSWER: Rs 1,50,000


3)   What will be sales in units if fixed cost is Rs 50,000, Contribution per unit is Rs 60 and desired profit per unit is Rs 10.


a. 6,000 units

b. Rs 1,000

c. 1,000 units

d. Rs 6,000


ANSWER: 1,000 units


4)   Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6. If fixed cost increase by 10% , B.E.P will 


a. Decrease by 2,500 units

b. No change

c. Increase by 2,500 units

d. None of the above


ANSWER: Increase by 2,500 units


5)   Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.


a. Rs 37,500

b. Rs 33,000

c. Rs 38,000

d. None of the above


ANSWER: Rs 37,500


6)   What will be the sales amount required to earn a profit of Rs 4,00,000, if fixed cost is Rs 80,000, direct material is Rs 5 per unit, direct labor Rs 2 per unit, direct overhead 100% of direct labor and selling price is Rs 12 per unit.


a. Rs 19,20,000

b. Rs 3,20,000

c. Rs 12,90,000

d. None of the above


ANSWER: Rs 19,20,000


7)   Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16.


a. 5,000 units

b. Rs 5,000

c. Rs 10,000

d. 10,000 units


ANSWER: 5,000 units


8)   What is Margin of Safety if Sales is 20,000 units and B.E.P is 15,000 units.


a. 35,000 units 

b. 5,000 units

c. Rs 5,000

d. Rs 35,000


ANSWER: 5,000 units


9)   What will be the amount of profit if Fixed cost is Rs 20,000 Sales is Rs 1,60,000 and P/V ratio is 25%?


a. Rs 40,000

b. Rs 20,000

c. Rs 10,000

d. None of the above


ANSWER: Rs 20,000


10)   Determine amount of profit if Variable costs is Rs 1,20,000 Fixed costs is Rs 40,000 and sales is Rs 2,00,000.


a. Rs 30,000

b. Rs 50,000

c. Rs 12,000

d. Rs 40,000


ANSWER: Rs 40,000

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