P/V Ratio Contribution/Sales*100
Contribution Sales - Variable Cost
BEP = Fixed Cost/Contribution*Sales
10000 = 4000/Variable cost *20000
Variable cost 80000000/10000
Variable cost 8000
Contribution 20000-8000
Contribution 12000
P/V Ratio 12000/20000*100
P/V Ratio 60
Sales 20000
V.cost -8000
Contributin 12000
F.cost -4000
Profit 8000
IF selling price reduced by 20%, New BEP
Sales 20000*20/100 16000
BEP 4000/12000*16000
5333.333333
Contribution Sales - Variable Cost
BEP = Fixed Cost/Contribution*Sales
10000 = 4000/Variable cost *20000
Variable cost 80000000/10000
Variable cost 8000
Contribution 20000-8000
Contribution 12000
P/V Ratio 12000/20000*100
P/V Ratio 60
Sales 20000
V.cost -8000
Contributin 12000
F.cost -4000
Profit 8000
IF selling price reduced by 20%, New BEP
Sales 20000*20/100 16000
BEP 4000/12000*16000
5333.333333