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You and your 2 friends start investing in a shaving box subscription company. The capital is a total of AED 600,000 and the three investors

You and your 2 friends start investing in a shaving box subscription company. The capital is a total of AED 600,000 and the three investors are going to invest AED 200,000 individually. Using the Table below, What is the Break even point, Please justify your answer

Product Number

Product Title

Product Description

Price

1

Pro-Raze

Six blade razor that comes with four cartridges and butter shaving cream. It is used for a sharp and clean shave.

1 month: AED 110

3 months: AED 320

6 months: AED 620

2

Clean & Smooth

Four blade razor that comes with four cartridges. It is designed to suit sensitive skin.

1 month: AED 70

3 months: AED 200

6 months: AED 400

3

Basic Man

Two blade razor that comes with four cartridges. It is a very light blade that can provide a simple and quick shave.

1 month: AED 35

3 months: AED 100

6 months: AED 200

4

Butter shaving cream

Suitable for dry and normal skin. It is moisturizing and tackles redness/irritation.

1 month: AED 15

3 months: AED 40

6 months: AED 85

5

Foam shaving cream

Suitable for oily and combination skin. It is light and does not clog the pores nor strips its natural oils.

1 month: AED 10

3 months: AED 25

6 months: AED 55

Expenses

Total Amount

Office Rent

AED 80,000

Website & Software

AED 15,000

Advertising

AED 130,000

License & Permit

AED 15,000

Utilities

AED 25,000

Insurance

AED 20,000

Labor

AED 100,000

Inventory

AED 15,000

Manufacturing

AED 200,000

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