Question
The owners of Taxi Company Mart have been looking for ways to improve sales at the store. One of the proposals is to have a
The owners of Taxi Company Mart have been looking for ways to improve sales at the store. One of the proposals is to have a weekly raffle with a total prize of P10,000 per week. For every P50 worth of goods purchased, the customer shall receive a numbered ticket for the raffle. The variable cost to print and distribute the ticket has been estimated at five pesos (P5.00). Promotions and other fixe costs in connection with the raffle, likewise, have been estimated at P15,000 per week. The current weekly operating results of Tax Company Mart are given below:
Sales P1.000.000
Variable Costs. 700.000
Fixed cost for the week 120.000
If the company's objective in conducting the weekly raffle is to double its present profit, how much sales must be generated to attain this profit objective?
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