Ms. Aditi has a business plan where she wants to develop a website and a mobile application for women healthcare services. The services on the both website and mobile platforms will be provided on subscription as well as pay as per service requirement. The business plan also suggests to provide regular updates to the website and mobile application in case of change in requirements as well as possible advertisements. In the financing part of the business plan costs involved are: 1. Initial development of: website is Rs.1 lakh, and mobile application is Rs.25, 000. 2. Development of regular updates: Rs. 5000 per month. 3. Marketing costs and commission to payment gateway for payment processing: Rs.20 per customer per transaction. 4. Selling price of each time the service is availed by consumers is Rs. 200. Ms. Aditi estimates that she will be able to sell to 800 units of the service to customers in the first month. 

Question: 

(a) Is Ms. Aditi going to break even at this level of sale? 

(b) What is going to be her profit or loss at the end of 800 transactions? 

(c) What is her break even point in no. of transactions? Show all your calculations.

Answer rating: 100% (QA)

We classify the given costs into Fixed costs and Variable costs as shown ... View the full answer