Fatima Companyis engaged in the business of women's clothing, sold only in the US at the present time.

The income statement of Fatima Co$.$ for the $2022$ year is presented below. For $2023,$ the company is expecting

a growth in revenues as well as in net income. This expansion will only be be possible, however, if

if the following assumptions are correct.

Increase the sales of women's clothing in the US by $15\%.$

Add men's clothing for the first time in its product line; total of $7,000$ men's suits will be sold

in $2023$ at an average price of $$345$ per unit. These coats will be purchased from a South

African company at a price of $$190$ per unit and sold to only online customers.

The cost of goods sold for the existing $($US$)$ product line consists of $80\%$ variable and $20\%$

fixed. $($Note that the fixed amount will remnain unchanged, while the variable postion will increase in

direct proportion to the increase in sales. The cost of goods sold for the online business

will be all variable.

The operating expenses for the existing line of business are $45\%$ fixed and $55\%$ variable.

Obviulsy, the dollar amount of the fixed costs and expenses will remain unchanged while the variable

expenses will change in proportion to changes in sales.

The operating expenses for the online market will be $20\%$ variable $($as a percent of

online sales of men's suits$)$: In addition, there will be fixed opearting expenses for the

online business in the amount of $$78,000/$ per year.

REQUIREMENTS:

A$.$ Calculate the net projected income for $2023,$ assuming the tax rate is to $21\%.$

$($The individual segments of the compnay do not pay the taxes: taxes are paid by the compnay as a whole$).$

B$.$ Calculate the GP $\%$ for $2022$ and $2023$ for the compnay

C$.$ Calculate the profit margin for $2022$ and $2023$ and the percentage change in the net income.

D$.$ Calculate the Break$-$even points in dollars for $2022$

E$.$ Calculate the Degree of Operating leverage for $20212.$