What would be the break-even point (defined as no profit, no loss situation) for KK’s factory in term of sales?
Correct Answer : A
A textile manufacturing firm employees 50 looms. It makes fabrics for a branded company. The aggregate sales value of the output of the 50 looms is Rs. 5, 00, 000. Assume that each loom contributes equally to the sales and manufacturing expenses are evenly spread over the number of looms. Monthly establishment charges are Rs 75000. If one loom breaks down and remains idle for one month, the decrease in profit is:
A salesman sells two kinds of trousers: cotton and woolen. A pair of cotton trousers is sold at 30% profit and a pair of woolen trousers is sold at 50% profit. The salesman has calculated that if he sells 100% more woolen trousers than cotton trousers, his overall profit will be 45%. However he ends up selling 50% more cotton trousers than woolen trousers. What will be his overall profit?