bob allison imports roses from california for direct distribution to customers in ottawa. five salespeople sell the rose

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bob allison imports roses from california for direct
distribution to customers in ottawa. five salespeople sell the
roses to shoppers in malls on thursdays, fridays, and saturdays and
receive 10% of the $2 selling price. each rose costs $0.35 from the
supplier. air freight costs $0.15 a rose, while customs duty costs
$0.15 a rose. provincial tax laws require that 7% of the selling
price be remitted to the government. mr. allison absorbs this cost
rather than passing it on to his customers. fifteen percent of the
roses received are damaged and thus cannot be sold. other expenses
include $325 for the sales manager's weekly salary, $500 a week for
promotion (newspaper ads and posters) and $100 a week for gas and
maintenance on the company car. the automobile has just been
purchased for $9360 and it is expected to last three years. for
accounting purposes, mr. allison uses the straight-line
depreciation method. mr. allison, who earns $30 000 a year, spends
20% of his time with the rose project and he allocates this cost
accordingly to that project. he hopes the company can earn $1000 a
week before tax. he wonders how many roses he must sell to break
even, how many to make the $1000 profit, and how many to order if
he expects to sell at that profit target level. (use a 52-week
year.)