answer the following question briefly with explanation with correct answer by seeing the image data.1.

1. Assume an average income-tax rate of 20%. What volume (number of shipments) would be needed to generate net income of 5% of revenue for each option?

2.Which option do you think is the more profitable one for this business? Explain by using indifference analysis.

i dont want paragprased and copied material.

Layout References Mailings Review View Help Tell me what you want to do ernet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing BUSI 2083 Case 2 Management from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite-relatively lower variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information in making the decision: Cost Information Option A Option B Delivery price (revenue) per shipment $100 $100 Variable cost per shipment delivered $85 $60 Contribution Margin per unit $15 $40 Fixed costs (annual) $1,200,000 $4,500,000 Management wants you to write a professional report, answering the following questions