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What is meant by the BEP for an activity

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Reference no: EM133116643

Question - Given

Sales price per unit = TZS 850

Variable cost per unit = TZS 750

Total fixed expenses = TZS 38,000

Target Profit = TZS 80,000

Q = Number (Quantity) of units sold

Required -

1. How many units will have to be sold to earn a profit of TZS 80,000?

2. Outline and discuss assumption that underline CVP analysis?

3. Calculate BEP in units and sales?

4. What is meant by the BEP for an activity? How is the BEP calculated? Why is it useful to know the BEP?

Reference no: EM133116643

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