Question
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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