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Question - Dear Tutor it's requirements to write down steps by steps formula to answer , appreciate your helping .
Mobile Burger Company (MBC), is a new start-up in the food truck business. Below were MBC monthly units sold and operating cost information for first 3 months of business:
Month Units Operating costs
January 1,700 $16,900
February 1,500 16,000
March 1,400 15,200
Required -
a. Calculate the number of burgers MBC need to sell to generate a monthly after tax target profit of $2,000. (Assume MBC's tax rate is 20%).
b. Expected sale for the coming month of May is 1,800 units. The owner of MBC is confident that May sales will increase by 10% if MBC spent additional $500 on sales promotion. Would you recommend the additional $500 spending on promotion? Defend your recommendation with cost/benefit analysis.
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