A company has engaged in Ice cream manufacturing business, the transactions for the month of October 201X are as follows:

Sales are 2 million,

Costs are 1.1 million,

Selling expenses 0.2 million,

taxes @ 35%

a) Calculate net income.

b) The manager of the company wants to perform sensitivity analysis if sales were increased by 24% (all cost and expenses are propotional to sales), what will be the net income?

By: Daniyal

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