A store sells t-shirt. the average selling price is rs.15 and the avarage variable cost (cost price)is rs.9 . thus,every time the store sells a shirt is has rs.6
Answers
Given : A store sells t-shirt. 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 is has rs.6
fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year.
To Find : Break even
Solution:
average selling price is rs.15
average variable cost (cost price)is rs.9
Average profit = rs 6 ( 15 - 9)
Fixed cost = 100000
Break even = 100000/6
=16,666.67
= 16667
16667 units to be sold for break even points
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Given :
A store sells t-shirt. 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 is has rs.6
fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year.
To Find :
Break even
Solution:
average selling price is rs.15
average variable cost (cost price)is rs.9
Average profit = rs 6 ( 15 - 9)
Fixed cost = 100000
Break even = 100000/6
=16,666.67
= 16667
16667 units to be sold for break even points