Determine the required sales volume, Marketing Management

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The cost data of Rooney plc is as follows: -

  •  Variable cost : Rs 1,800.
  •  Selling Price : Rs 3,500.
  •  Fixed Selling and Distribution cost : Rs 1,700,000 per annum
  •  Budgeted sales : 5,000 units.

 
Required:

(a) Evaluate the BEP (Units)

(b) Evaluate the BEP (Rs)

(c) Determine net profit if selling price falls by 10% and there is an increase in sales volume of 10%.

(d) Determine the required sales volume if selling price is unchanged to result in a net profit of Rs 7,650,000


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