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Paragraph Styles Editing Question 6. The following information has been provided to you by Havells...

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Accounting

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Paragraph Styles Editing Question 6. The following information has been provided to you by Havells Inc. regarding their costs and margins for the month of August, 2019. With the help of this information, solve the following questions: (10 Marks) Income Statement for August, 2019 Sales (2000 units) $ 1,000,000 Variable Expenses $ 40,000 Contribution Margin Fixed Expenses $ 25,000 Net Income a) Find the Break Even Point (in Dollars) for Havells Inc. [2] b) The Sales manager for Havells is not happy with the units sold for the month of August and he is proposing a new strategy by slashing the price of a single unit by $15 and increasing the advertising budget by a total of $20,000 to sell higher number of units. If this strategy is implemented, sales manager is certain that the sales will boost by 30% than what they sold in August 2019. Perform CVP analysis and suggest whether this strategy should be implemented or not [6] o Calculate the Margin of Safety for Havells Inc. for August 2019, [2]

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