Question
4. Compute the number of orders necessary to make a profit before tax (PBT) of 25.5m GHS (minimum 15% return on investment) in the
4. Compute the number of orders necessary to make a profit before tax (PBT) of 25.5m GHS (minimum 15% return on investment) in the Tamale center. 5. Agatha is considering increasing advertising by 5m GHS in northern region to make the new fulfillment center viable. How would an increase in advertising impact the BEP of adding a new fulfillment center? Comment on whether increasing advertising may be a good decision. 6. As the northern region is underserved, Agatha is considering reducing average prices by 30 GHS per order in the northern region to make the fulfillment center viable. How would a price decrease impact the BEP and MOS of the fulfillment center in Tamale? Market research suggests orders are likely to increase 15% if prices are reduced by 30 GHS per order. How would reducing prices impact the PBT? Comment on your findings.
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