Jason has been able to break even the last two years, but cannot turn a profit. He
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Question:
Jason has been able to break even the last two years, but cannot turn a profit. He must earn $9,000 in operating income next year.
Selling price per unit=$7.50
Cost for paper per unit=$.75
Cost for printing per unit=$.85
Cost for film per unit=$.45
Staff salaries=$46,000
Other operating costs=$27,030
What is the new operating income if he advertises at an additional $1000 to increase volume by 10%?
What is the after-tax operating income with a tax rate of 25%?
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