A pharmacist found her operating cost to be $27\mathrm{.}6\%$ of the gross sales meaning R$0\mathrm{.}27$ coming in are required for ages, rent and other upkeep of the store in order to stay in business, she does some research on other local pharmacies and calculates that if a store sells $100000$ items $($which cost R$0\mathrm{.}70)$ AT R$1$ each the gross income will be R$100000.$If the items average R$0\mathrm{.}50$ it will only make a difference in the number of items handed in the year. It will not alter the basic conditions. If now, the pharmacist buys at $30\%$ discount her cost of goods will be $70\%$of the retail price, or R$0\mathrm{.}70$ of the retail item she sells for R$1.$ Her business for the year will make:

Sales at Retail: R$100000$ which is $100\%$

Cost of Goods$=70\%$

Gross Profit $=30\%$

Less cost of doing business $=27\mathrm{.}6\%$

Net Profit$=2\mathrm{.}4\%$

The pharmacist however, may not be content with this profit for long as another pharmacy has opened on the opposite corner of the road, offeringthe R$1.$ item for R$0\mathrm{.}89.$ The pharmacistonly meets this price drop the following year, without increasing the number of items she handles.

Hr second year results are therefore, as follows:

Sales at Retail, $100000$ units @ R$0\mathrm{.}89.$

Cost of goods:

Gross Profit:

Less cost of doing business:

Net Profit:

The pharmacist sees she can no longer continue operating the businessas it is$,$ therfore, she determines to maintain the volume in Rands of R$100000$ and ofset her costs of R$27600,$ whileretailing the particular item at the R$0\mathrm{.}89$ price. This means that to meet the operating costs at R$27600$ she must handle how many units atR$0\mathrm{.}89?$

Her year thus ends looking like:

Sales at Retail, $100000\_\_\_\_\_$units @R$0\mathrm{.}89$ R$\_\_\_\_\_?$

Cost of $\_\_\_\_\_$items @R$0\mathrm{.}70$ R$\_\_\_\_\_\_\_\_\_\_\_?$

Gross Profit: R$\_\_\_\_\_\_\_\_\_\_\_\_?$

Less cost of doing business: R$\_\_\_\_\_\_\_\_\_\_?$

Net profit$/$Loss for the year R$\_\_\_\_\_\_\_\_\_\_\_?$

From the above, calculate the net profit.

In desperation the pharmacist seeks alternate suppliers and managers to obtain the product at R$0\mathrm{.}60$ instead of R$0\mathrm{.}70.$ At the end of the year, she may face either one of two possible results.

The first is based on a return to the old volumr of $100000$ units sold at R$0\mathrm{.}89$ and costing R$0\mathrm{.}60.$ It would be:

Sales at Retail, $100000$ units @R$0\mathrm{.}89$ R$\_\_\_\_\_\_\_\_\_\_\_\_?$

Cost of $100000$ items @R$0\mathrm{.}60$ R$\_\_\_\_\_\_\_\_\_\_\_\_?$

Gross Profit: R$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

Less cost of doing business: R$\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

Net profit for the year: R$\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

The second possible outcome would result from the effort to maintain the old volume in Rands at $100000$ with a selling price of R$0\mathrm{.}89$ and at a cost of R$0\mathrm{.}60.$ It would be:

Sales at Retail, $\_\_\_\_\_\_\_\_$units @ R$0\mathrm{.}89$ R$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

Cost of $\_\_\_\_\_\_\_$items @R$0\mathrm{.}60$ R$\_\_\_\_\_\_\_\_\_\_\_\_?$

Gross Profit: R$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

Less cost of doing business: R$\_\_\_\_\_\_\_\_\_\_\_?$

Net profit for the year: R$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$