A company for the production of men's shoes has a chain of stores. The company offers 15 different models at a relatively affordable price. The company wants to assess whether it will be profitable for it to open a new store in Sofia. It has basic data for calculating the critical point. Sales price: 30 per pair Variable costs per pair: Delivery price: 18 Retail allowance: 3 Fixed costs per year: Rent: 60,000 Salaries: 200,000 Advertising: 80,000 Others: 20,000

1: Calculate the annual BEP in quantity and value.

2: If the sales volume for 1 year is 60,000 pairs of shoes, what will be the net profit / loss from the eventual opening of a store in Sofia?

3: Why is BEP analysis necessary?