Type the answer A new ball pen with unique characteristics has been developed by a ball pen maker. His design development executive proposed three retail prices: Rs.30 for the mega star, Rs.20 or the superior, and Rs.15 for the average model. According to his marketing manager, wholesalers and retailers should be granted at least a 30% discount. The fixed cost is expected to be roughly Rs.140000, with a variable cost per unit of Rs.7. Calculate the break-even point for each ball pen model.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Type the answer
A new ball pen with unique
characteristics has been developed by
a ball pen maker. His design
development executive proposed
three retail prices: Rs.30 for the mega
star, Rs.20 or the superior, and
Rs.15 for the average model. According
to his marketing manager, wholesalers
and retailers should be
granted at least a 30% discount.
The fixed cost is expected to be
roughly Rs.140000, with a variable
cost per unit of Rs.7.
Calculate the break-even point for
each ball pen model.
Transcribed Image Text:Type the answer A new ball pen with unique characteristics has been developed by a ball pen maker. His design development executive proposed three retail prices: Rs.30 for the mega star, Rs.20 or the superior, and Rs.15 for the average model. According to his marketing manager, wholesalers and retailers should be granted at least a 30% discount. The fixed cost is expected to be roughly Rs.140000, with a variable cost per unit of Rs.7. Calculate the break-even point for each ball pen model.
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