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Products Sale Price (per Variable cost Contribution Sales Mix % unit) (per unit) Margin (per unit) Soap 30.00 22.00 8.00 20% Shampoo 40.00 25.00
Products Sale Price (per Variable cost Contribution Sales Mix % unit) (per unit) Margin (per unit) Soap 30.00 22.00 8.00 20% Shampoo 40.00 25.00 15.00 15% Biscuit 25.00 13.00 12.00 35% Health Drinks 180.00 145.00 35.00 10% Noodles 15.00 9.00 6.00 20% 88 cent store sells Soap, Shampoo, Biscuit, Health drinks and Noodles. The sale price, variable cost, contribution margin and sales mix are shown above. Having a total fixed cost of 22,000.00, which comprises of Rent (7,000 per month), utilities (2,000 per month) workers (3,000 * 4 people = 12,000 per month), insurance (1,000 per month) calculate the following. a) The weighted average contribution margin b) Total breakeven point (in units) c) Total breakeven point (in values) d) Total cost e) Sales value f) Is the business profit/loss? Assuming it operates 30 days in a month g) Amount of soap, shampoo, biscuit, health drinks and noodles to be sold to reach an operating profit target of 4,400.00. h) What are the necessary risks involving in the business? i) What are the opportunities involving in the business?
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