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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

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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

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