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Q2 (20 marks): A boutique shop sells three products: product A, product B, and product C. The seasonal selling price per unit and the unit
Q2 (20 marks): A boutique shop sells three products: product A, product B, and product C. The seasonal selling price per unit and the unit sales are given in the table below. The company has three product lines in which production costs per unit are also given for each product. Annual overhead is $1.068,000. Production costs vary directly with sales, but overhead does not. A) Complete the following tables. Sales Product Product A Product B Product C Winter S 400 S 100 $ 50 Selling Spring S 250 $ 150 $ 100 S 150 S 175 $ 125 unit Autumn S 300 S 125 $ 75 Winter 3.000 850 700 Spring 1.200 3,500 1200 Unit Sales Summer 400 4,500 1800 Autumn 1.000 3,500 1400 Unit sold price per Summer Annual Sales per product Total annual sales Production costs Product A Product B S 200.00 $ 90.00 S Product C $ 55.00 Product Cost per unit Annual production cost per product Total annual production costs $ S Dollars S % of Sales % Total annual sales Total annual production costs S % $ Overhead % $ Annual Gross Profit (P) % B) If the boutique shop wants to double its profit, by how much should the annual sales increased? C) If the boutique shop wants to triple its profit, by how much should it decrease production costs
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