A store sells t-shirts. The average selling price is Rs. 15 and the average variable...
80.2K
Verified Solution
Link Copied!
Question
Accounting
A store sells t-shirts. The average selling price is Rs. 15 and the average variable cost (cost price) is Rs. 9. Thus, every time the store sells a shirt it has Rs. 6 remaining after it pays the manufacturer. This Rs. 6 is referred to as the unit contribution. (a) Suppose the fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year. Find Break-even in units?
(b) If the owner desired a profit of Rs. 25,000, what will be break-even point in Rupees? (c) If fixed costs rose to Rs. 110,000, break-even in units volume would be? (d) If the average selling price rose to Rs.16, break even volume would fall?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
