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Guys gym is a local gym in Kamloops. Guy sells 2 items: Full memberships and Premium memberships. Information relating to next months budget for the
Guys gym is a local gym in Kamloops. Guy sells 2 items: Full memberships and Premium memberships. Information relating to next months budget for the two memberships are as follows: Full Premium Expected Sales 250 175 Sales Price $ 70 $ 125 Variable Cost $ 10 $ 10 The company has a monthly fixed costs of $30,000 and a tax rate of 15%. Required: a.) Compute the companys expected profit (net income) for the upcoming fiscal period. b.) Compute the companys sales mix. c.) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? Round to the nearest unit. d.) Assuming a consistent
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