1. **Problem statement:** IGI Fashion company buys pants at P120.00 each. The overhead cost is 75% of the product cost, and the owner wants a 40% profit on the selling price. 2. **Calculate the selling price:** - Product cost per piece is $120$ - Overhead cost is $75\%$ of product cost: $0.75 \times 120 = 90$ - Total cost price before profit: $120 + 90 = 210$ - Let the selling price be $S$ - Owner wants $40\%$ profit on selling price, so profit is $0.40S$ - Total cost plus profit equals selling price: $210 + 0.40S = S$ - Solve for $S$: $$210 = S - 0.40S = 0.60S$$ $$S = \frac{210}{0.60} = 350$$ - **Selling price is P350** 3. **Lowest break-even sale price:** - Break-even means no profit and no loss, i.e., selling price equals total cost price - Total cost price = product cost plus overhead = $210$ - **Lowest sale price for break-even: P210** 4. **Buy-one take-one promotion at P500 total:** - Regular price per pants is $350$ - Two pants at regular price: $350 \times 2 = 700$ - Promotion price is P500 for two pants - Compare promotion price to cost price for two pants: - Cost price for two pants: $210 \times 2 = 420$ - Since $500 > 420$, the company will cover cost and overhead and earn profit - **Therefore, buy-one take-one at P500 is possible and profitable**