Hint:

$Ch10$

BEP $=FC$ UCM

Target $=(FC+$ TOP $)$UCM

UCM $=P-VC$ per unit

$M\frac{S}{\%}=(5-$ BEPS $)5$

$MS=5-$ BEP$5$

Sales$-$ variable $cot-$Fixed cost

$\{\begin{array}{cc}\text{B}\text{E}\text{P}& =FC\text{U}\text{C}\text{M}\end{array}$

$M5\%=(5-$BEP$5)5$

Legends

$|$Please provide Answer $-$ don't farget to s

Correct Answer

Q$2$ Purple Tulip Inc has finished a new fragrance, Lily of dessert. Management is now

considering its marketing strategies. The following information is available:

"The cost of the packageing and copying coats

Two managers have different ideas on ways to increase the profitablity.

Jane sugsests dropping the price to $$60$ per unit and maintain our advertising budget

at $$15,000,000.$ She thinks they will generate total sales of $2,000,000$ units

Sara suggests to increase out advertising budget to $$25,000,000$ she thinks

sales will increase to $1,400,000$ with out changing the price