Question: answer part (d, e, f) Kholoud owns AlBaha Laundry in Jubail. She has decided to add a new service to her customer by washing rugs.

answer part (d, e, f)

answer part (d, e, f) Kholoud owns AlBaha Laundry

Kholoud owns AlBaha Laundry in Jubail. She has decided to add a new service to her customer by washing rugs. The annual fixed cost of washing the rugs is 60,000 SAR and the variable cost for cleaning each rug is 8 SAR. She will be charging her customers 15 SAR for each rug and has an anticipated demand of 7500 rugs annually. a. What is the break-even? b. What will be the profit loss at the anticipated demand of 7500 rugs? c. It is anticipated after a few month's her demand will increase to 10000 rugs. How much will be her new profit-loss? d. If she is wants to reach the BEP at an anticipated demand of 7500 rugs, what must be the price that she must charge for each item? e. Kholoud wants to charge a price of 18 SAR/rug, as she feels that if she charges high, she may lose her customer. What is your recommendation? f. Refer to questions (a) draw the graph for breakeven

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