Suppose ten percent (10%) of the smokers are willing to take Nicorette Medicated Chewing Gum as the first step to kick their smoking habits. It is also assumed that the smokers will consume one (1) pack containing 105 gums for every two month (bi-monthly).

Compute a one-year Income Statement (i.e. Profit & Loss) to establish the potential Net Profit/Loss After Tax for Nicorette, assuming the following:

(i) Nicorette selling price to the retailers (per pack): RM

(ii) the recommended retail selling price (per pack): RM 190

(iii) manufacturing cost of goods (per pack): RM 90

(iv) the planned advertising expense: RM 10 million

(v) the sales promotion expenses : RM 5 million

(vi) the corporate tax rate: 25%.

Please use the table formatted as below to answer this question.

P & L item	Calculation	RM (million)

Answer rating: 100% (QA)

Solution No of smokers willing to take up medicated chewing gum 5... View the full answer