Question
A company producing idem has estimadd the market size to be 8,00,000 units per year. The company has fixed expenses of Rs 5 crore per
A company producing idem has estimadd the market size to be 8,00,000 units per year. The company has fixed expenses of Rs 5 crore per year. It is sourcing X at Rs 1000 and planning to sell it at Re 1500 per piece. Find the break even point. What is the market shave corresponding to thes sale. (Market Shase = (+1) Sale Market size)
The company management wants to achieve a market
shase of 15%. during the year. They aru considering two scenarios for it. Scenario I involves ad campaign costing Rs 2 crore an while Scenario 2 involves reducing the unit price to Rs 1200. What is the most profitable scenario? What the break even quantities of sale Corresponding to the two scenarios? (2+1+1)
Graphically represent the break analysis.
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