computerized brokerage service (6% of revenue). Read the requirements. Begin by showing the formula and then entering the amounts to calculate the required sales dollars for New to break even. (Abbreviation used: CM = contribution margin.) New must make trades to break even. Requirement 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $14,000. Begin by selecting the formula to compute the required sales in units to earn a target profit. Rearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $14,000. New must make trades to earn a monthly operating income of $14,000. Now compute the dollar revenues needed to earn a monthly target profit of $14,000. New needs in revenues to earn a monthly operating income of $14,000. (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) area, and the sales in units (trades) and dollars when monthly operating income of $14,000 is earned. area, and the sales in units (trades) and dollars when monthly operating income of $14,000 is earned. We will begin graphing the CVP relationships by first breakeven point and the point where monthly operating income of $14,000 is earned. (Enlarge the graph to medium size and use the point tool button displayed below to draw the graph. Be sure to select a label for each point pomea.) your computations from Requirements 1 and/or 2, as appropriate, to assist in identifying plot points.] Be sure to select a label for each line drawn.) (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) (Enlarge each graph before selecting your answer.) A. B. C. D. Requirement 4. Suppose that the average revenue New earns increases to $2,500 per trade. Compute the new breakeven point in trades. How does this affect the breakeven point? Under new assumptions, New must make trades to break even. With the increase in the average revenue per trade, the breakeven point in number of trades computerized brokerage service (6% of revenue). Read the requirements. Begin by showing the formula and then entering the amounts to calculate the required sales dollars for New to break even. (Abbreviation used: CM = contribution margin.) New must make trades to break even. Requirement 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $14,000. Begin by selecting the formula to compute the required sales in units to earn a target profit. Rearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $14,000. New must make trades to earn a monthly operating income of $14,000. Now compute the dollar revenues needed to earn a monthly target profit of $14,000. New needs in revenues to earn a monthly operating income of $14,000. (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) area, and the sales in units (trades) and dollars when monthly operating income of $14,000 is earned. area, and the sales in units (trades) and dollars when monthly operating income of $14,000 is earned. We will begin graphing the CVP relationships by first breakeven point and the point where monthly operating income of $14,000 is earned. (Enlarge the graph to medium size and use the point tool button displayed below to draw the graph. Be sure to select a label for each point pomea.) your computations from Requirements 1 and/or 2, as appropriate, to assist in identifying plot points.] Be sure to select a label for each line drawn.) (After you hit continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) (Enlarge each graph before selecting your answer.) A. B. C. D. Requirement 4. Suppose that the average revenue New earns increases to $2,500 per trade. Compute the new breakeven point in trades. How does this affect the breakeven point? Under new assumptions, New must make trades to break even. With the increase in the average revenue per trade, the breakeven point in number of trades
