BEP Assignment PDF

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Instructions: Students need to submit the solutions through their Turnitin accounts.

Students can use pen & paper to solve the questions and submit by taking photos or any
other method that they deem appropriate (MS Excel or MS Word). The deadline for
submission is July 12th, 2020.

Data for a Clinic.

No of sales in year 1 150


Selling price per unit Rs. 15,000
Variable cost per unit Rs. 2,500
Marketing Launch Party Rs, 150,000
Marketing Public Relation Rs. 50,000
Medical Staff Salaries Rs. 300,000
Other Overheads. Rs. 250,000

Q 1. What is the expected contribution per unit?


Q 2. What are the total fixed costs for year 1 of operations?
Q 3. Calculate the total contribution the business will achieve based on selling 150 units.
Q 4. What is the breakeven level of output in year 1?
Q 5. What profit/loss will the business make if they sold 150 units? (Try using the BEP to
calculate profit/loss).
Q 6. What profit/loss will the business make if they sold 50 units? (Try using the BEP to
calculate profit/loss).

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