Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Avocado Company sells guitars to Mexican restaurants. The guitars sell for $800, and the fixed monthly operating costs are as follows: $600 Rent and utilities

image text in transcribed

Avocado Company sells guitars to Mexican restaurants. The guitars sell for $800, and the fixed monthly operating costs are as follows: $600 Rent and utilities Wages and benefits to luthier 2400 Other expenses 475 Avocado understand that for every dollar of sales, $0.70 went to cover fixed costs, and anything above that point was profit. What is the amount of revenue that Avocado should earn each month to break even? (Round your answer to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

Write short notes on Interviews.

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

7-16 Compare Web 2.0 and Web 3.0.

Answered: 1 week ago