A store sells t-shirts. The average selling price is Rs.15 and the average variable cost is Rs.9. Fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year. Find Break-even in units, P/V ratio and margin of safety. How many shirts must be sold to earn a targeted profit of Rs.20,000?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A store sells t-shirts. The average selling price is Rs.15 and the average variable cost is Rs.9. Fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year. Find Break-even in units, P/V ratio and margin of safety. How many shirts must be sold to earn a targeted profit of Rs.20,000?

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