In January, Gamma Company sold 2,000 units of its product at a price of $20 per unit. Its COGS (cost of goods sold) for January totaled $20,000, and its SG&A (selling, general and administrative) costs totaled $16,000. If Gamma Company is expecting to sell 2,200 units in February, how much is the expected profit for February? (assume that the sales price will not change, and that 2,200 units is in the relevant range

The expected profit for February is $6,000

Explanation:

It is assumed that the COGS is the variable cost and SG&A is the fixed cost.

First we need to determine the sale value of February

Sales = Selling Price x Number of Units sold = $20 per unit x 2,200 = $44,000

Now Calculate the COGS

COGS = Numbers of units sold x COGS per unit = 2,200 units x $20,000 / 2,000 = $22,000

As the SG&A is assumed to be a fixed cost, so it will remains the same.

Now calculate the Expected Profit for February

Profit = Sales - COGS - SG&A = $44,000 - $22,000 - $16,000 = $6,000

supplier search

Explanation:

Portillo's Fast Food restaurants are in the supplier search stage in the business buying process. The supplier search refers to the stage of the business buying process whereby the buyer or the company seeks the best suppliers or vendors.

The company can compile a list of suppliers and make a research about them to know the one that's most appropriate to carry out the job at hand and will be most effective and efficient. This can be infered from the question as Portillo's is looking for a vendor that can provide a product according to its new specifications at a price that is less than what it was paying in the past.