Determine the daily break-even points

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Problem: You are a newly hired business analyst of a Milk tea business. The owner of the business instructed you to present your break-even analysis and he gave the following data below. The fixed cost of the milk tea business amounted to PHP 100,000.00 per month. Your objective is to determine the daily break-even points in pesos and in units foe each item.

Items

Price

Cost

Monthly Forecasted sales in units

Milk tea

100

25

2,200

Tuna Bread

45

15

1,000

White Spaghetti

75

20

1,500

Answer the following questions:

1. Determine the daily break-even points in pesos and in units for each item

2. What are the preventive measures you will suggest as a business analyst to avoid incurring losses?

3. What are the marketing strategies you will advise to boost sales or increase market shares?

Reference no: EM133037165

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