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Blue Ocean Company sells high-quality T-shirts. The business's profit calculation for last year is shown here: Blue Ocean has indicated they are considering another possible
Blue Ocean Company sells high-quality T-shirts. The business's profit calculation for last year is shown here: Blue Ocean has indicated they are considering another possible price change to help increase the business's profits. The alternative the business is considering is to increase the selling price pert.shirt to $17. They believe this would result in a loss of sales of 450 T-shirts. Required: a. Using the above income statement format, show the caiculation of expected profit for Blue Ocear's operation next year (20 marks) b. How many t-shirts would Blue Ocean have to sell to earn a profit of $9,000? (10 marks) c. Do you agree with Blue Ocean's decision? Explain why or why not. (10 marks)
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