A retail dealer in garments is currently selling 9500 shirts annually. He supplies the following details for the year en
Posted: Wed Apr 27, 2022 10:45 am
A retail dealer in garments is currently selling 9500 shirts annually. He supplies the following details for the year ended 31 December 2015:
Selling price per shirt..............................................
Variable cost per shirt(Material + Labour).............
Fixed costs:
Staff salaries for the year.......................................
General office cost for the year.............................
Advertising costs for the year................................
Rs.
500
300
8,00,000
4,80,000
1,60,000
As a manager of the firm you are required to answer the following each part independently:
i) Calculate the break-even point and margin of safety in sales revenue and in sales units.
ii) If it is decided to introduce selling commission of Rs.5 per shirt, how many shirts would require to be sold in a year to earn a net income of Rs.10,00,000.
iii) Assuming that for the year 2016 an additional staff salary of Rs.160,000 is anticipated, and price of a shirt is likely to be increased by 15%, what should be the break-even point in number of shirts and sales revenue?
iv) What will be the profit of the dealer if its sells 14000 shirts?
need the ans asap
Selling price per shirt..............................................
Variable cost per shirt(Material + Labour).............
Fixed costs:
Staff salaries for the year.......................................
General office cost for the year.............................
Advertising costs for the year................................
Rs.
500
300
8,00,000
4,80,000
1,60,000
As a manager of the firm you are required to answer the following each part independently:
i) Calculate the break-even point and margin of safety in sales revenue and in sales units.
ii) If it is decided to introduce selling commission of Rs.5 per shirt, how many shirts would require to be sold in a year to earn a net income of Rs.10,00,000.
iii) Assuming that for the year 2016 an additional staff salary of Rs.160,000 is anticipated, and price of a shirt is likely to be increased by 15%, what should be the break-even point in number of shirts and sales revenue?
iv) What will be the profit of the dealer if its sells 14000 shirts?
need the ans asap