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The DiViDi business is a business that sells DVDs. When the sales volume is 200,000 DVDs, the expected operating profit for the period is determined
The DiViDi business is a business that sells DVDs. When the sales volume is 200,000 DVDs, the expected operating profit for the period is determined as 200,000TL. The DVD unit sales price is 16TL. The purchase cost is 10TL per disk, and the storage placement cost is again 2TL per disk. The total fixed cost of the enterprise is 600,000TL. It is expected that the purchase price will increase by 30% the following year. a. Determine the break-even point for the current year. b. Determine the operating profit of the business for the current year, assuming that the sales volume has increased by 10%. c. Determine the amount of revenue that the business needs to reach in order to make the same amount of operating profit in the following year (the sales price will remain constant at 16 TL). d. Determine the sales price that the business must set in order to have the same percentage of contribution for the following period.
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