Question
Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and
Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store: Sales price per cooker . . . . . . . . . . . $50 Variable expenses per cooker. . . . . . $16 Fixed expenses per year: - - - Building rental . . . . . . . . . . . . . . $12000 - - - Equipment depreciation . . . . . . $5300 - - - Selling . . . . . . . . . . . . . . . . . . . . . $15500 - - - Administrative . . . . . . . . . . . . . . $17000
d. Refer to the original data, the number of cookers to be sold each year to break even is?
(f) [1 mark] Refer to the original data, Kowkeela now has two salespersons working in the storeone full time and one part time. It will cost her an additional $7700 per year to convert the part-time position to a full-time position. Kowkeela believes that the change would bring in an additional 681 unit sales each year. If this change is made, the new net income will be $
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