Given the following data, compute the BEP in units: Selling price = $2.00
Variable cost = $0.75
Fixed cost = $250,000
A) 333,334
B) 200,000
C) 125,000
D) 400,000
E) Cannot be determined with this information.

Question

Quizplus · Accepted Answer

BEP (in units) = Fixed cost / (Selling price - Variable cost) 
BEP = $250,000 / ($2.00 - $0.75) 
BEP = $250,000 / $1.25 
BEP = 200,000 units

Given the Following Data, Compute the BEP in Units: Selling