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Question - Assume that the Pants Shop can purchase pants for $32 from a local factory; other variable costs amount to $10 per unit. The average selling price per pair of pants is $70 and total fixed costs amount to $84,000.
Required -
1. How much revenue will the business receive if 2,500 or 4.500 units are sold? And How much variable costs will the business incur? And also how much net operating income (NOI).
2. If the company expected to get net profit/ income $56.000 after taxes 20%, how much product should be sold?
3. How much margin of safety?
4. If company expected to get 25% of sell from the base of data, how much NOI and NI.
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