Talking about the revenue drivers and profit margin, we have incurred certain costs for the production...

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Finance

Talking about the revenue drivers and profit margin, we haveincurred certain costs for the production of recycled sneakers. Wewill gather all the recycled materials where it will cost us around$3-5 to sanitizing and cleaning those old materials and further wehave cost for renting the place to work on which is estimatedaround $300-400 per week. Moving on our labour cost have reachedaround $5 for design those sneakers. As we aim to keep the cost forrecycled sneakers as low as possible our estimated cost persneakers have come upto $10-12 depending on the design as well.
Fixed cost is rent
variable is sanitizing and cleaning cost
estimated sales per week is 300
Q) question need to be solved Break-even chart andcalculations for particular scenario.

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4.1 Ratings (492 Votes)

BreakEven when rent is 300 and the selling price of one pairof sneakers is 10Cost of sanitizing 3 per pair of sneakersRent 300Labour cost 5 per pair of sneakersSelling price of recycled sneakers 10Let the number of sneakers sold be xBreakeven occurs when total profit earned is zeroTherefore 10x35x300 See Answer

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Transcribed Image Text

Talking about the revenue drivers and profit margin, we haveincurred certain costs for the production of recycled sneakers. Wewill gather all the recycled materials where it will cost us around$3-5 to sanitizing and cleaning those old materials and further wehave cost for renting the place to work on which is estimatedaround $300-400 per week. Moving on our labour cost have reachedaround $5 for design those sneakers. As we aim to keep the cost forrecycled sneakers as low as possible our estimated cost persneakers have come upto $10-12 depending on the design as well.Fixed cost is rentvariable is sanitizing and cleaning costestimated sales per week is 300Q) question need to be solved Break-even chart andcalculations for particular scenario.