An entrepreneur sees an advert for a supermarket that is offered for sale. He calculates the operating cost, which is estimated at R100 000.Gross profit percentage for supermarkets in the area is 20%.What will be the break-even turnover

Break even gross profit = operating costs
Gross profit = 20%
To break even 20% = R 100 000
Thus 100% = 100 000/20 * 100
(100 000*5)
Thus Break even number = R500 000