Craig is considering opening a retail nursery consisting of plants, flowers and other landscaping products. He is asking for your help in calculating and preparing cost-volume profit analysis to determine if this would be a good investment. You and Craig compiled the following information to use in the analysis.

Sales revenues for the retail business is estimated to be $62,000. Total expenses are estimated to be $25,000. Of this amount, approximately $16,120 were variable, while the remainder were fixed. Since Craig will offer a variety of different products, you suggest that he calculate the breakeven point in terms of sales dollars, rather than units.

CVP and Analysis(1) 3. Calculate Craig's company breakeven point in Sales Dollars? Breakeven in sales dollars = = What does the break even point mean? 4. Determine if Craig should also embark on a $6,000 advertising campaign. Show your work for full credit 5. Should Craig invest? Why or Why not