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This question asks to solve for the Break-Even Point (BEP) in terms of value and units using the provided dataThis question asks to solve for the Break-Even Point (BEP) in terms of value and units using the provided 

### Given Information:
- Sales: 40,000 units at Rs. 20 per unit
- Profit Volume Ratio (PVR): 50%
- Fixed Cost: Rs. 3,20,000

### Step-by-Step Solution:

#### 1. **Break-Even Point in Units**:
The formula for BEP (in units) is:

\[
\text{BEP (units)} = \frac{\text{Fixed Cost}}{\text{Contribution per unit}}
\]

Where the **Contribution per unit** is calculated as:

\[
\text{Contribution per unit} = \text{Selling Price per unit} \times \text{Profit Volume Ratio}
\]

Using the provided dataThis question asks to solve for the Break-Even Point (BEP) in terms of value and units using the provided 

### Given Information:
- Sales: 40,000 units at Rs. 20 per unit
- Profit Volume Ratio (PVR): 50%
- Fixed Cost: Rs. 3,20,000

### Step-by-Step Solution:

#### 1. **Break-Even Point in Units**:
The formula for BEP (in units) is:

\[
\text{BEP (units)} = \frac{\text{Fixed Cost}}{\text{Contribution per unit}}
\]

Where the **Contribution per unit** is calculated as:

\[
\text{Contribution per unit} = \text{Selling Price per unit} \times \text{Profit Volume Ratio}
\]

Using the provided 
- Selling Price per unit = Rs. 20
- Profit Volume Ratio = 50% = 0.50

\[
\text{Contribution per unit} = 20 \times 0.50 = Rs. 10
\]

Now, calculate BEP in units:

\[
\text{BEP (units)} = \frac{3,20,000}{10} = 32,000 \text{ units}
\]

#### 2. **Break-Even Point in Value**:
The formula for BEP (in value) is:

\[
\text{BEP (Value)} = \text{BEP (units)} \times \text{Selling Price per unit}
\]

Using the BEP in units (32,000 units) and Selling Price per unit (Rs. 20):

\[
\text{BEP (Value)} = 32,000 \times 20 = Rs. 6,40,000
\]

### Final Answers:
- **BEP in units**: 32,000 units
- **BEP in value**: Rs. 6,40,000

Would you like more details or have any questions on this?

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Here are five related questions to expand on this topic:
1. How would a change in fixed costs affect the break-even point?
2. What happens to BEP if the selling price per unit increases?
3. How is the profit volume ratio (PVR) calculated?
4. Can you explain the impact of variable costs on the BEP calculation?
5. What would be the BEP if the profit volume ratio were reduced to 40%?

**Tip**: Understanding the relationship between fixed costs, selling price, and contribution margin helps in making informed decisions about pricing and cost management to optimize profits.

XYZ Ltd gives the following information: Sales of 40,000 units at Rs. 20 per unit, Profit Volume Ratio 50%, and fixed cost Rs. 3,20,000. Solve BEP in value and units.

Learn how to calculate the Break-Even Point (BEP) in both units and value using the sales data provided for XYZ Ltd. Sales: 40,000 units at Rs. 20 per unit, Profit Volume Ratio of 50%, and fixed costs of Rs. 3,20,000. Detailed step-by-step solution included.

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