Answer to Question #323287 in Financial Math for mafi

Question

9. ABC merchandising firm plans to work on a margin of 46% of retails and it incurs other variable cost of birr

0.16per birr of sales. A fixed cost equals to birr 25,000.

(a) Find the equation relating total cost to sales?

(b) Find the breakeven point?

(c) What would be net profit before taxes if sales are birr 1000,000?

(d) If the firm wants to make profit before taxes of birr20, 000, what should be the revenue level?