Calculate the number of burgers MBC need to sell

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Reference no: EM132765642

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.

Reference no: EM132765642

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