Mrs Panel has Rs. 3,00,000 investments in her business firm. She wants a 10% return on her money. From the analysis of the recent cost figures, she finds that her variable cost of operating is 70% of sales and her fixed cost is Rs. 90,000 per annum. Show computations to answer the following questions:
- What sales volume must be obtained to break-even?
- What sales volume must be obtained to get a 10% return on the investment?
- Mrs Panel estimates that even if she closed the doors of her business, she would incur Rs. 30,000 as the expenses per year. At what sales would she be better off by locking her business up?