FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that

Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that the cost of sales for them is 85%. You would like to invest $250,000 for marketing in your business.

  1. How many customers must you get to break even?
  2. How many customers must you get to make a 10% operating profit?

Step by Step Solution

★★★★★

3.35 Rating (142 Votes )

There are 3 Steps involved in it

Step: 1

Calculating BreakEven and Profitable Customers Assumptions The cost of sales is 85 of the weighted s... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Managerial Accounting

Authors: Ray H Garrison, Alan Webb, Theresa Libby

11th Canadian Edition

1259275817, 978-1259275814

More Books

Students also viewed these Finance questions

Question

★★★★★
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Answered: 1 week ago

Question

★★★★★
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Answered: 1 week ago

Question

★★★★★
Q1. How worried are clients and stakeholders in day-to- day product improvement? 2. the industrial corporation Case for Agility "The struggle is not always to the most powerful, nor the race to the...

Answered: 1 week ago

Question

★★★★★
Integer sort. Write a linear-time filter that reads from standard input a sequence of integers that are between 0 and 99 and prints to standard output the same integers in sorted order. For example,...

Answered: 1 week ago

Question

★★★★★
The fundamental frequency of an open organ pipe corresponds to middle C (261.6 Hz on the chromatic musical scale). The third resonance of a closed organ pipe has the same frequency. What are the...

Answered: 1 week ago

Question

★★★★★
Examine organization structures for global enterprises

Answered: 1 week ago

Question

★★★★★
Consider a renewal process having interarrival distribution F such that F(x) = 1 2 ex + 1 2 ex/2, x > 0 That is, interarrivals are equally likely to be exponential with mean 1 or exponential with...

Answered: 1 week ago

Question

★★★★★
The journal of Ward Technology Solutions, Inc., includes the following entries for May, 2012: May 1 The business received cash of $75,000 and issued common stock. 2 Purchased supplies of $500 on...

Answered: 1 week ago

Question

★★★★★
How can you simplify complex information to create a powerful multimedia presentation?Create graphicsChoose imagesAdd special effects

Answered: 1 week ago

Question

★★★★★
Hotel DelRay is located at the heart of the city of Brussels, in Belgium. Brussels is a major hub for international politics, a home for several international organizations and diplomats, and a...

Answered: 1 week ago

Question

★★★★★
Requirements 1. Prepare common-size income statements. 2. Which company earns more net income? 3. Which company's net income is a higher percentage of its net sales revenue? Data for Carey, Inc, and...

Answered: 1 week ago

Question

★★★★★
Suppose your department decides to host a celebration because they exceeded sales expectations for the quarter. If you were only focused on equality, what would you do? Limit institutional barriers...

Answered: 1 week ago

Question

★★★★★
Income Statement Revenue: Collars $ 322,560 Leashes 271,040 Harnesses 312,500 Total Revenue: $ 906,100 Cost of goods sold 28,258 Gross profit $ 877,842 Expenses: General and administrative salaries $...

Answered: 1 week ago

Question

★★★★★
Determine the moment generated by the 425 N force applied at point D about point C Note: Remember Counterclockwise moments are considered positive. Justify your answer to receive full points. 215 mm...

Answered: 1 week ago

Question

★★★★★
A recruiter is using a consistent set of questions to interview candidates for retail cashier roles in locations across the US Which question ( s ) would be inappropriate to ask? Select all that...

Answered: 1 week ago

Question

★★★★★
A customer entrusts certain important documents for safe custody to his bank.The bank keeps the documents in a wooden box.Later it is found that the documents were destroyed by white ants.What is the...

Answered: 1 week ago

Question

★★★★★
Monette Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. (Click...

Answered: 1 week ago

Question

★★★★★
The following T-accounts show postings of selected transactions. Indicate the journal used in recording each of these postings a through e. Cash Accounts Receivable Inventory (d) 500 (e) 300 (b)...

Answered: 1 week ago

Question

★★★★★
Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: By how much would...

Answered: 1 week ago

Question

★★★★★
Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: If nine air...

Answered: 1 week ago

Question

★★★★★
Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $348,000 and...

Answered: 1 week ago

Question

★★★★★
A population has a proportion equal to 0.30. Calculate the following probabilities with n = 100: a. P (p 0.35) b. P (p > 0.40) c. P (0.25 6 0.40) d. P (p 0.27)

Answered: 1 week ago

Question

★★★★★
A random sample of size 100 is to be taken from a population that has a proportion equal to 0.35. The sample proportion will be used to estimate the population proportion. a. Calculate the...

Answered: 1 week ago

Question

★★★★★
Given a population in which the proportion of items with a desired attribute is p = 0.25, if a sample of 400 is taken, a. What is the standard deviation of the sampling distribution of ? b. What is...

Answered: 1 week ago

Previous Question Next Question