4:30 (6:00) 7:30 Name: . Class Period: eurialeno-man Acet 2220 Zeigler - Falcon Stationers, Inc. Chapter 3 CVP Case Study (Due Wed, 1/31 - start of elass) ly open from 8am to 8pm six days per week. The store is a BGSU retail upplies, magazines, and a few books. The following is the most recent annual Income Statement received from the company's externa Sales Cost of sales $464,900 162.700 Gross margin (i.e. Gross Profit) 302.200 es S, G & A (ie. Operating) expenses: Salaries Rent Utilities (NC $97,000 cm EC 13,500 10,000 Misc/Other Profit -4,000 184,500 $117.200 A: an eperinseust, Frieda, the owner, kept the store open for only eight hours on a recent Sunday. Resulting ales wre 340 and part-time employment payroll costs were $135. Per the above income statement, and after performing a few calculations and creating some percentages, she came up with about $591 as the estimated daily cost of operations without Sunday hours. She then concluded that about $910 in sales revenue would be necessary to justify opening on Sundays. Required: Document the calculations Frieda made to determine her figures of $591 and S910. (Be sure to document your work so others can understand your analysis) 1 As you address Freda's analysis above, list at least one question you have for her. In essence, what else would you have wanted to know before making a recommendation? 2. 3. Based upon the facts presented, should Frieda open on Sundays? Why or Why not? Take a position and explain. You may include both numerical and/or non-numerical commentary. If you choose to use the reverse to document your calculations, so indicate. 4:30 (6:00) 7:30 Name: . Class Period: eurialeno-man Acet 2220 Zeigler - Falcon Stationers, Inc. Chapter 3 CVP Case Study (Due Wed, 1/31 - start of elass) ly open from 8am to 8pm six days per week. The store is a BGSU retail upplies, magazines, and a few books. The following is the most recent annual Income Statement received from the company's externa Sales Cost of sales $464,900 162.700 Gross margin (i.e. Gross Profit) 302.200 es S, G & A (ie. Operating) expenses: Salaries Rent Utilities (NC $97,000 cm EC 13,500 10,000 Misc/Other Profit -4,000 184,500 $117.200 A: an eperinseust, Frieda, the owner, kept the store open for only eight hours on a recent Sunday. Resulting ales wre 340 and part-time employment payroll costs were $135. Per the above income statement, and after performing a few calculations and creating some percentages, she came up with about $591 as the estimated daily cost of operations without Sunday hours. She then concluded that about $910 in sales revenue would be necessary to justify opening on Sundays. Required: Document the calculations Frieda made to determine her figures of $591 and S910. (Be sure to document your work so others can understand your analysis) 1 As you address Freda's analysis above, list at least one question you have for her. In essence, what else would you have wanted to know before making a recommendation? 2. 3. Based upon the facts presented, should Frieda open on Sundays? Why or Why not? Take a position and explain. You may include both numerical and/or non-numerical commentary. If you choose to use the reverse to document your calculations, so indicate
