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0 KB/S ill 79% 3:30 Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received
0 KB/S ill 79% 3:30 Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store: .... Sales price per cooker $50 Variable expenses per cooker...... $20 Fixed expenses per year: -- Building rental. $12200 -- Equipment depreciation. $6700 Selling .. $19100 - Administrative $18000 (a) [2 marks] During the first year, the store sold only 3100 cookers. Using the space given after question (f), prepare a contribution approach income statement. +help (b) [1 mark] In relation to (a), Kowkeela's degree of operating leverage (in two decimal places) is I(1) (c) [1 mark] In relation to (a), Kowkeela is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 60% next year. The expected percentage increase in net operating income (in 2 decimal places) is (only input the value not the % symbol) \(1) (d) [1 mark] Refer to the original data, the number of cookers to be sold each year to break even is (1) (e) [1 mark] Refer to the original data, Kowkeela has decided that she must earn at least $18000 the first year to justify her time and effort. The number of cookers to be sold to reach this target profit is (1) (f) [1 mark] Refer to the original data, Kowkeela now has two salespersons working in the storeone full time and one part time. It will cost her an additional $6600 per year to convert the part-time position to a full-time position. Kowkeela believes that the change would bring in an additional 605 unit sales each year. If this change is made, the new net income will be $ (1 )
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