Emma Jones signed a contract with GMAT successs publisher to sell learning material, she recently sold them in Boston and is now thinking in selling them in Chicago.

• Purchase price for the package ( book and software) = $120 per package with the privilege of returning the unsold packages & get a refund with the full amount of $120.
• She have to pay a rent to a booth $2,000.
• She will incur no other cost.
• Selling price per unit $200.

Required:

1. Use the equation method to calculate the Breakeven Point (in units).
2. Use the equation method to calculate Revenue at Breakeven Point.
3. Resolve A + B using the contribution margin method (C.M% = 40% ).
4. Resolve A + B using the graph method .
5. Assume Emma has a targeted operating income of 12,000. How many units should emma sell to achieve the targeted operating income.
6. . Assume Emma has a targeted operating income of 12,000. How much Total revenue should emma earn to achieve the targeted operating income.( C.M% = 40%).
7. Another way to calculate (F).

8. Assume Emma has a targeted net income of 10,000. How many units should emma sell to achieve the targeted net income. ( note that: Tax rate 10%, Other revenue and expense= zero, interest expense = zero).