A company producing item X has estimated the market size to be 800.000 units per year. The company has fixed expenses of Rs. 5 crore per year. It is sourcing item X at Rs. 1000 and planning to sell it at Rs. 1500 per

g057 Market Size). (1+1)

piece. Find the break-even point. What is the market share corresponding to this sale. (Market Share = Sale/

25 two scenarios for it. Scenario 1 involves an ad campaign costing Rs. 2 crore while Scenario 2 involves

The company management wants to achieve a market share of 15% during the year. They are considering

reducing the unit price to Rs. 1200. Which is the more profitable scenario? What are the break-even quantities of sale corresponding to the two scenarios? (2+1+1)

Graphically represent the break-even analyses.

A compary producing item X has estimated the maket size to be 800.000 units per year. The compary has piece. Find the break- even point. What is the market share corresponding to this sale. (Market Share = Sale) Market Size). (1+1) The company management wants to achieve a market share of 15% during the year. They are considering two scernarios for it. Scenario 1 involves an ad campaign costing Rs. 2 crore while Scenario 2 involves reducing the unit price to Rs. 1200. Which is the more profitable scenario? What are the break-even quantities of sale corresponding to the two scenarios? (2+1+1) Iraphically represent the break-even analyses. (3)