Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. (5 POINTS) Javed Ahmed intend to open a new business to supply a nationally known line of shoes. He found a good location in
3. (5 POINTS) Javed Ahmed intend to open a new business to supply a nationally known line of shoes. He found a good location in Olaya to open his shop, and have determined that the average prices and costs of operating the store are: Variable Cost =SAR 30 per pair Insurance = SAR 700 per month Selling Price = SAR 50 per pair Rent = SAR 5000 per month Utilities & Telephone = SAR 300 per month In addition, he plan to hire two sales women on a commission basis of 10% in order to provide them with incentive to sell shoes. You are required determine the breakeven point in SAR? REQUIRED: a. b. Total fixed cost (1.5 pts) Total variable cost (1.5 pts) Break even in SAR ( 1 pts) Break even in units (1 pts) c. d
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started