Indian Crafts: Multiple Product Break Even Analysis

Abstract

Ms Sunayna, while talking to her cousin, who had visited her outlet Indian Crafts (IC) for the first time, was sharing her concerns about low sales in recent months. Rupee sales per invoice from repeat customers were going down. Sales from new customers were high but new customer generation was very low. She was very much concerned about declining sales and profits over the previous two years and was looking for ways to revive sales of IC. She also had an inventory which was not moving, especially some costly paintings and large artefacts. Now that her brother Mr Jatin Kumar was not interested in this business, the entire responsibility was on her shoulders. With more than five years in business, she understood it well and was in a position to take on all responsibilities. During this period, she had mostly handled sales but recently she dealt with vendors, organized theme events, and was confident of operating the stores herself. She had to do something in a short time to turn around declining sales or otherwise may be the business would have to be closed down. She was sure that Mr Jatin Kumar will be always available if she wanted to discuss anything or needed guidance in any matter.