Case Study $(08/01/2024$ online session$)$

We have the following current information about our company called FVYK$.$ The board of directors' expectation from you as the CEO is that you increase the total profit, but while doing this, you should not reduce the operating leverage below five, and there is no harm in increasing it above. You cannot reduce your sales and you can increase them up to $40\%$ at most, but of course this means accepting a decrease in your prices. According to your marketing manager, who is always right, the formula;

"Required $\%$ decrease in price $=$ Desired $\%$ increase in sales $/2)"$

is valid for our company and sector. Is it possible to meet the YK request under these conditions? How?

Breakeven point $($no of units$)$ : $1000($profit is zero at this level of sales$)$

Breakeven point $($TL$)$: $100000TL$