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