subject : Marketing

This is a subjective question. hence you have to write your answer in the Text-Fleld given below (a) Explain the following terms with an example each. Barter, Offset pricing, Buy Back Arrangement (3) (b) The owner of an ice cream parlor was planning to expand his room. On the eve of the expansion, he cid a cost audit of his existing operations. These are the facts he found. The rent paid for the parior m is. Rs. 40,000 per month. There were allied costs like cleaning, telephorie, and electricity, which amounted to Rs. 10,000 per month. He employed two salespersons and paid each a monthly salary of Res. 10,000 . He sold ice cream at Rs. 1000 per kg, which he sourced at Rs. 300. Currently, he sells 500kgs of ice cream monthly. 1. Find the break-even point for the ice cream parior. (2) Ii. What is the profit he is making now? (2) The owner plans to add some extra space to the parior, costing him Rs. 20.000 monthly rent. He also wants to add one more salesperson at the same salary of Rs. 10000 to look after the increased flow of customers. He also expects the allied costs (cleaning etc.) to go up by 30%. iii. What is the new break-even point of the parior? (2) V. His sales went up by 10%. What is his new profiuloss? (2)