$(5\%$ of revenue$),$ supplies and postage $(2\%$ of revenue$),$ and usage fees for the telephone lines and computerized brokerage service $(8\%$ of revenue$).$

Read the requirements.

First identify the formula to calculate the breakeven point in dollars.

$($Fixed expenses $+$ Operating income $)+$ Contribution margin ratio $=$ Breakeven sales

Planning Partners Investors' breakeven revenue in dollars is $,300$

Requirements

Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $$500$ in revenue for Planning Partners, how many trades must it make to breakeven?

Compute dollar revenues needed to earn monthly operating income of $$5,250.$

Graph Planning Partners's CVP relationships. Assume that an average trade leads to $$500$ in revenue for the firm. Show the breakeven point, sales revenue line, fixed expense line, total expense line, operating loss area, operating income area, and sales in units $($trades$)$ and dollars when monthly operating income of $$5,250$ is earned. The graph should range from $0$ to $40$ units $($trades$).$

Assume that the average revenue that Planning Partners Investors earns decreases to $$300$ per trade. How does this affect the breakeven point in number of trades?