2. John has a plan to distribute soft drinks in jimma town for the next year in partnership with Moha company. He signs a contract with the general manager of Moha soft drinks to operate at a profit margin of 40 %. Other incremental costs including selling expenses incurred while selling the drinks in jimma town. John includes these costs at the rate of 20% in addition to the cost of soft drinks. Further, he incurs an estimated fixed cost of Birr 60,000per year in the operation. a. What is the linear sales-cost equation b. What is the breakeven volume of sales in Birr per year c. What is the retailers profit if he sold soft drinks worth Birr 400,000in a year? d. If john has sold two crates of soft drinks at Birr 50 each, find the total cost equation interms of quantities
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