you have a small business selling bottles of 321 blatzoff, a reasonably nasty-tasting energy drink

you sell each bottles of 321BO for $5.00

each bottles cost you $2.00 to purchase from the manufacturer

you pay your salesperson a 10% commission on all sales on top of a base salary of $1,000 per month.

your rent is $1000 per month

other miscellaneous costs ( insurance,utilities ,etc) average $500 per month

you are pretty sure you can sell 1200 bottle per month at the $5.00 price point.

A. how many bottles do you need to sell to break-even each month?

B. how much monthly income will you have of you sell 1200 bottles per month?

you are considering offing 20% off coupon for each bottles to increase sales.you think sales will increase to 2400 bottles per month( assuming each bottle will be purchased with a coupon) A fixed coupon processing fee of $500 will be incurred each month if you choose this strategy

C. how many bottles will need to sell each month to break-even with the coupon strategy? Assume sales commissions will still be based on the $5.00 "list price"

D. how much monthly income will you have if you sell 2400 bottles each month with this coupon strategy?

another option you are considering involves spending $3000 per month on an advertising campaign. You think that you can raise monthly sales to 2400 bottles at an undiscounted sales price of $5.00( i.e, no coupon,etc)

E. how many bottles will need to sell each month to break-even with the advertising strategy?

F.

how much monthly income will you have if you sell 2400 bottles each month with this coupon strategy?

which strategy would be best if you thought you could sell 2800 bottles per month either with the coupons or the advertising? in other words:

G. how much income would you make with the coupon strategy if you were able to sell 2800 bottles per month?

H. how much would you make with the advertising strategy if you were able to sell 2800 bottles per month?

Required:

Please write down the detailed calculation ,included the formulas you used