Question: 3. A company functioning from a rented building, decides to buy a new building for its head office. The cost of new building including furniture
3. A company functioning from a rented building, decides to buy a new building for its head office. The cost of new building including furniture and fixture is RO3 million which will be financed with a loan of RO 2 million. The monthly loan installment would be RO 100,000. New building will be depreciated @ 5\% annually. Prior to this transaction: The original rental payment was RO 140,000/- (Fixed). Sales =10 million, Fixed costs =7 million, Variable costs =2 million Calculate the profit and loss and also break-even point before and after the transaction
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