Gregor and Greta have planned to sell 300 bags together in each market. They plan to visit 24 markets during the year, to get an idea of whether the estimated sale of candy bags in the budget is reasonable or not, gregor wants your help to make a zero point calculation based on the following information:                                               kronor comment Selling price 30 each FK 662 000 RK 5 each   a)Which is the zero point turnover? b)Will they make a profit based on the estimated number of bags of sweets sold? justify your answer and show your calculations.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 6P
icon
Related questions
Question

7) Gregor and Greta have planned to sell 300 bags together in each market. They plan to visit 24 markets during the year, to get an idea of whether the estimated sale of candy bags in the budget is reasonable or not, gregor wants your help to make a zero point calculation based on the following information:

 

                                            kronor comment

Selling price 30 each

FK 662 000

RK 5 each

 

a)Which is the zero point turnover?

b)Will they make a profit based on the estimated number of bags of sweets sold? justify your answer and show your calculations.  

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT