Question 1:

Dashing&Smashing is a men's clothingretailer. Its best-selling Occasion Suit is purchased from a wholesaler that sets its price at a level that yields a 20% margin. The wholesaler buys the suit from a Quebec suit manufacturer whose selling price is $100. Dashing&Smashing sets its prices to achieve a 50% margin on its cost.

A What is the retail price of the Occasion Suit?

The portion of its total annual fixed costs that Dashing&Smashing allocates to its Occasion Suit product is $50,000.

B) If Dashing&Smashing wants to make an annual profit of $10,000 on this product, how many suits must it sell?