Selling price $$40\mathrm{.}00$

Variable expenses:

Cost for invoice $$13\mathrm{.}50$

Sales staff Commission $4\mathrm{.}50$

Total variable expenses $$18\mathrm{.}00$

Fixed Costs:

Media$/$advertising $($print and electronic$)$ $$30,000$

Showroom rental expenses $20,000$

All staff salaries $170,000$

$$220,000$

Mr$.$ Fahim Shafiul Alam, Managing Director of La Mode BD$,$ is planning to open another

showroom in Dhaka city by next year. To do so he is interested to know required business

preparation, possible investment, risk factors, logistic supports, and other necessary stuffs. As

you are doing Management Accounting $($ACT$202)$ as part of BBA program at Brac University he

believes you can work as his business analyst, and you can advise him for the upcoming project.

Mr$.$ Alam believes that the Banani branch can be a great example and its data are sufficiently

enough to forecast for the next project. Later he sent me an email and requested you to answer

his following questions using the concept of Cost$-$Volume$-$Profit $($CVP$)$ analysis.

Question : If $15,000$ pairs of shoes are sold in a year, what would be net operating income or loss for La

Mode? $(1$ mark$)$