Rayhum Ce. manufactures. and aella glew in the dark phene eases. Terr}r Andreikawslti, the president at" the Raymum Cu, has a hard time undEIatanding the emanating in his rm. Yesterday wanting, he was war},r can-ned when he received mail frem hia aeeeuntant, Julia Etmherg. She sent him the fullawing ineeme statements: LIL III-d1 mum i m :- 3TH can alga-mm 1% '59; til-mad" 15m: 21mm Fin m Lane 1 am mm m an: Hinimm LEE LETS thtleam m m were m TI'HJ BEE Wm em in: Terry was semewhat frustrated and said \"Last n'ianth, we seld l,l] glew in the dark phdne cases and earned $6,350 in aperating inceme. This menth, when we said lj cases. I thenght we'd realize SIILETS. This ineeinc statement shnws an eperating inc-ante cf Sllll Haw can 1 ever make anyr plans when I can't even predict my incarne'? This aeceuriting nan- sense is tee cent'hsing! I will give Julia one last chance ta explain te me what's gning an." \"Can yet: please try ta explain this eperating incarne nan'sense be me ence mere?" Ten'y asked Julia an the phene. Ten].r mid: \"After! saw last nienth's incense statement. I thought each glnw in the dark case generated 6.35 in net inceme; new this month each ene generates $3.11]?! We changes tennis place in the cast at" each case, an why daes this change in aperating incnme happen? If ] hatl Itnenrn ] was geing te have a higher operating inceme. l Wnld'vc lacked mere scridusly at adding te cur praduct line!\" After patiently listening ta Terry's blah, and talting a deep breath, Julia answers: \"DI" eaurse, Terry. Let me explain tn you again haw yen made as much mere eperating incense than what you were expecting." W a] Assume Julia's Iele. Explain 1e- Tersy lath}r his me 131' operating ineetne per maseet was in user. h] "ferryI plans to sell Sill} gin-w in the dark phene eases nest menth. Hew mush Itilzt-eratiria'r ineeme ean Terr}.r espeet te earn nest mnmh ifhe realizes his planned sales? It?! Tens was net at all hens-3r with the piejeeted inenme statement you slmwed him for a sales level of ll] eases- New he wants Ie knew haw manyr slew in the dark eases he needs I]: sell te earn same in apt-seating inmrne As a safety net, he weuld like te knew hew many maseets he will need te sell In break even- d} Terry was evaluating 2 additienal nptiens 1e inerease the number at" eases said nest mus-nth. The nations are as fullnws: ptlnn I increase sales by advertisin-- eerease the selling psiee r sneial media 1W- purehme a paeltsge 131' I! a :- . liesaeased selling price wil- set the nest math. n nerease the ntnnber et' -= n.- -:-- Id fret-n 5th] to Lilith]. Which plan ahnuld Terry.r implement? At what level nfsalea wetlIr.t he he indifferent henueen the me plmts'? e} Right after Terr}.r eemplete-d an inemne prejeelien Fer lj glew in the dark phene eases. his supplier infermed him ef a 2M1. increase in east efgeeds said, e'eetit-ie immediately. TerrillI knews that he eannet pass the entire increase en In his eusterners, but he 1hinlts he an pass an hall'efthe 201d inereese while suffering enljr a 5% deemese in tents seld. ShenldThn'yrespend tn the increaaeinenet efgeethselrl with an increase in priee? [I Please refer back It: the original inferntatien. Ten-5r has deeided te add sparkly lsptep eases te his pro-duet line. He has feumi supplier who will previtle the Sparkly leptep eases fer $32. and he plans in sell them fer 555. They are premium quality wee. All ether 1rrarialdulrr. errata currentlyr incurred fer selling glew in m: darlr phttne um will he ineurred fer selling sparkly leptep eases at the same rate. hditienal xed rests ef $350 per month will he inermed. He believed he ran sell ene Iaptep ease fer E'lr'l'jf 3 phene eaaes. Hew mere,r slsm'lutlj.r laptep eases and glew in the dark phene eases will Ten-3r need te sell eeeh ere-nth in erder re break ever
