# CMA Study Group

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## Different way of calculating BEP which one to take

• #### 1.  Different way of calculating BEP which one to take

Posted 01-19-2022 12:14 AM
A bit confused.

The LHS soln takes weightage avg. ucm / weightage avg SP. to find weightage avg. Contribution %. While the RHS soln takes individual. if i apply the LHS technique in RHS , the answer is not coming. it has taken individually.

Can anyone assist plz.

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YASIR ALI
Accountant
KOLKATA
India
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• #### 2.  RE: Different way of calculating BEP which one to take

Posted 01-19-2022 12:57 AM
if we try to calculate the 2nd question (RHS) with the LHS technique. the result will not come as below

Sales mix : 12 : 3 or 0.80 : 0.20
Product 1 : Weigted average sales : 12 x 0.80 = 9.6
Product 1 : Weigted average cont : 7.2 x 0.80 = 5.76

Product 2 : Weigted average sales : 3 x 0.20 = 0.6
Product 1 : Weigted average cont : 1.5 x 0.20 = 0.30

Total weighted average sales : 9.60 + 0.60 = 10.20
Total weighted average cont : 5.76 + 0.30 = 6.06

Thus, weighted average CMR : 0.5941 (6.06 / 10.20)

Breakeven Sales : 5800,000 / 0.5941 = 9,762,667/-

Whereas the actual Soln : 5800,000 / 0.58 = 10,000,000/-

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YASIR ALI
Accountant
KOLKATA
India
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