Question
Star Ltd is a company operating in the fashion industry. Several products are sold, covering both adults and kids. The Profit and Loss statement
Star Ltd is a company operating in the fashion industry. Several products are sold, covering both adults and kids. The Profit and Loss statement of the last period is the following: Revenues 100.000 Cost of goods sold 35.000 Sales people -Employees 18.000 Provision Sales people 5.000 Packaging 1.000 Lighting of shops and offices 3.000 Administrative costs 12.000 Marketing costs 7.000 Operating income 19.000 Knowing that Sales are made by 62.000 $ ADULTS and 38.000 $ KIDS. Variable costs have same % on prices (both adults and kids) Average price for an adult item sold is 20 $; and it is 25 for a single kid item Mix is fixed and doesn't change for small changes of total sales; the same for unitary prices e variable costs Fixed costs don't change for small changes of total sales as well Calculate the number of PIECES OF ADULT ITEMS to be sold to guarantee an Operating income of 39% of Total revenues. Just input the number; elaborate your answer and show your calculations on the paper sheets.
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