Homework Answers
| Net Income during strike period | |
| Particulars | Amount |
| Sales ( 12000*29*2) | 696000 |
| Less: Variable Costs ( 12000*18*2) | 432000 |
| Contribution | 264000 |
| Loss Of contribution | 264000 |
| Savings in fixed cost ( 70000*2) | 140000 |
| Savings in fixed selling cost(36000*2*9%) | 6480 |
| Loss Of net operating Income | 117520 |
| Add: Start Up cost | 14000 |
| Net Loss On closing the settup | 131520 |
1b Business should be continued
2) Total loss of net Income by closing business = 117520
Indifferent Sales = 117520/11 i.e 10684 units
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