14) Assuming that showa supermarket sells its commodities usually at a margin of 27% on all
its purchases and sales. Moreover, the company uses a 6% commission as selling expense
and birr 60,000 as a fixed cost. Assuming a linear relationship between sales and cost:
a) Develop the total cost equation
b) Compute the break-even sales volume in birr
c) If the supermarket targets at birr 100,000 profits, how much should be its sales
volume?
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