Question No: 03 This is a subjective question, hence you have to write your answer in the Text-Field given below. (a) A dealer has got a car billed from the company at Rs. 5,00,000. Its desired return on the selling price is 10%. What should be the selling price? [21 (b) The dealer in the above question has a show room on which he has invested Rs. Five cr. If his desired return on investment is 12% per annum what should be the price of the car? Assume that he sells 2000 units of car in a year, (3) (c) The fixed cost of running the car show room is Rs. 10 lakh per month. Assume that it has only one variable cost which is the cost of the car (the amount he pays to the company) the dealer sells and is Rs, 5 lakh. The dealer's sales price is Rs. 5.5 lakh per car. 1. Find the break-even point for the dealer's business. Present it on a diagram [2] 2. Last month he sold 25 cars. How much profit did he make? [2] 3.He is planning to take some extra space to expand the showroom and add two more sales persons. The rent of the extra space is Rs. 50,000 per month and the salesmen would cost Rs. 25000 individually to his firm. What should his sales volume (in term of units of cars) be in order to justify this expenditure (so that he maintains his profits at last month's level? 131