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Big Time Investor Group is opening an office in Portland, Oregon, Fixed monthly costs are office rent ($8,000), depreciation on office furniture ($1,800), utilities ($2,000),

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Big Time Investor Group is opening an office in Portland, Oregon, Fixed monthly costs are office rent ($8,000), depreciation on office furniture ($1,800), utilities ($2,000), special telephone lines ($1.000), a connection with an online brokerage service ($2,600), and the salary of a financial planner ($19,600). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). Read the requirements X Requirement 1. Use the contribution margin ratio approach to compute Big Time's breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for Big Time, how many trades must be made to break even? Begin by showing the formula and th breviation used: CM = contribution margin.) i Requirements Fixed costs + Target profi 350000 1. Use the contribution margin ratio approach to compute Big Time's breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for Big Time must make 50 tral Big Time, how many trades must be made to break even? 2. Use the equation approach to compute the dollar revenues needed to eam a Requirement 2. Use the equation ap monthly target profit of $12,600. Begin by selecting the formula to con 3. Graph Big Time's CVP relationships. Assume that an average trade leads to $1,000 in revenue for Big Time Show the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating loss area, the operating income area, and the sales in units (trades) and dollars when monthly operating income of $12,600 is earned. 4. Suppose that the average revenue Big Time earns increases to $2,000 per ry - Stud trade. Compute the new brookeven point in trades. How does this affect the breakeven point? (Round your answers to the nearest whole number) Click the graph, choose a tool in the cial you Print Done up is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,000), depreciation on office furniture ($1,800), ut phone lines ($1,000), a connection with an online brokerage service ($2,600), and the salary of a financial planner ($19,600). Variable the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the tele rokerage service (6% of revenue). nts. 40 50 60 70 its (Trades) Requirements wing lines: the sale e graph. Do NOT US oints. Be sure to sell se the line tool button display for 2, as appropriate, to assist 1. Use the contribution margin ratio approach to compute Big Time's breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for Big Time, how many trades must be made to break even? 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600. 3. Graph Big Time's CVP relationships. Assume that an average trade leads to $1,000 in revenue for Big Time. Show the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating loss area, the operating income area, and the sales in units (trades) and dollars when monthly operating income of $12,600 is earned. 4. Suppose that the average revenue Big Time earns increases to $2,000 per trade. Compute the new breakeven point in trades. How does this affect the breakeven point? (Round your answers to the nearest whole number.) ph, choose a tool in the Print Done

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