PART III Instruction: Give short and clear answer for the following phrases or words. A retail co. plans to work on a margin of 44% of retail price & to incur other Variable Cost of 4%. If is expected fixed cost of Br. 20,000.( 3 pts ) Find the equation relating Total Cost to sales Find the profit if sales are Br. 600,000 If profit is Br. 15,000 what should be the revenue level? A sales man earns a weekly basic salary plus a sales commission of 20% of his total sales. When his total weekly sales total br. 1700, his total salary for the week is 800. Derive the formula describing the relationship between total salary and sales. (2pts) Suppose “Abol Buna Company” has the following experience: assuming linearity: Sales = 25,000 units Selling price = Birr 100 TVC = Birr 1,500,000 TFC = Birr 350,000 Based on the information above, answer the following questions: Develop total revenue, total cost and profit functions for the company in terms of quantity. (1pt.) Find the quantity level at breakeven point and revenue level breakeven point. (1pt.s) Determine the sales (revenue) level that can lead to a profit of Birr 500,000. (1pt.)
