So I came across this problem and it is really stumping me. I have some theories, but I am a marketing guy...


Assume:
Sales - $400k
COGS - 41%
Rent* - 6%
Other expenses - 50%
Net profit - 6%

*Rent is a fixed amount, not based on sales.

Questions -
If rent goes up 37.5%, how much do sales need to increase to maintain a 6% net profit?

If rent goes up 37.5%, how much do sales need to increase to raise net profit to 8%?

Same two questions if rent goes up 50%.



Thanks for your help.