ANSWER BOTH 6 & 7

6. Start with the profit model given in #5 on the previous page to complete this problem. What is the profit/ loss outcome when the sales are increased to $30,211 due to an increase in price for this style? The Cost of Goods Sold and General Operating Expenses will remain unchanged. Adjust dollar amounts and percentages to reflect the change in the Gross Margin and Revenue. Round percentages to the nearest 1%. (4 points) 7. Start with the profit model given in #5 on the previous page to complete this problem. What happens to the profit/loss calculation of this style when the Cost of Goods is reduced to $13,100 due to the off-shore sewing of goods? The Net Sales and General Operating Expenses will remain unchanged. Adjust the Gross Margin and Revenue dollar amounts and percentages to reflect the change in COGs. Round percentages to the nearest 1%. (4 points)