After graduating from AUD Sarah plans to start a book publishing company in the Media City. She did some research and found that the printer will cost around Dh 200,000. She estimated that the variable cost per book will be Dh 150 and the selling price will be Dh 350.

a. How many books must he sell to break even? Also calculate the breakeven in dirham. 

b. she wants to pay himself a salary of Dh 5000 per month, what is her breakeven point in units and dirham? 

c. In the first three months of his business, he sold 250 books. Suddenly the printer breaks down. He spent Dh 25000 to fix the printer. In addition to 250 books sold, how many more books she should sell to breakeven? Assume that this part of the question is independent, and she does not draw any separate salary.

Answer rating: 100% (QA)

Fixed Cost Du 16000o vaable cost per book Dh 140 soling pce selling ... View the full answer