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A company for the production of men's shoes has a chain of stores. The company offers 15 different models at a relatively affordable price. The company wants to assess whether it will be profitable for it to open a new store in Sofia. It has basic data for calculating the critical point.
Sales price: 30 € per pair Variable costs per pair: Delivery price: 18 € Retail allowance: € 3 Fixed costs per year: Rent: € 60,000 Salaries: € 200,000 Advertising: € 80,000 Others: € 20,000
1: Calculate the annual BEP in quantity and value.
2: If the sales volume for 1 year is 60,000 pairs of shoes, what will be the net profit / loss from the eventual opening of a store in Sofia?
3: Why is BEP analysis necessary?
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