Diversified Investor Group is opening an office in Portland Oregon. Fixed monthly costs are office rent ($8600), depreciation on office furniture ($1400), utlilities ($2000), special telephone lines ($1100), a connection with an online brokerage service ($2400), and the salary of a financial planner ($12500).

Divenslited Investor Group is opening an office in Portiand, Oregon. Fixed monthly costs ane office nent (58,600) depreciation on office fumnture ($1,400), utities ($2.000 special telephone lines ($1,100), a connection win an oni e trokrage service S 2400) and the salary da financial plan er S 12.500 variatie costs in ude pry erts she tnancial parner 9% of re orna. adverting 13% e, resno. spples and poslap (3% of revenue), and usage fees for the te ephone ines ad compierized brokerage service (6% of reverie). Read the requirements Requirement 1 Use the co trtuton margin ratio approach to compte Diversiteds treasaven revenue in auas if the average rade leads to sooo n reveue for Ove how many nos mata made to break even? Begin by showing the Iormula and then erteng the amourts to calain the roared Saes dollars for Diverified to break oven uoreviation used C:contrbnon margn) Required sales in dolars Divensfied must makerades to break even Requirement 2. Use the equation approach to compute the dolar revenues needed to eam a monthily target proft of $11,200 Begin by selecting the formula to compute the required sales in units to eam a target prof Target pro Rearrarge the formula you determined above and compute the required number of des to eam a monthly target profit of $11.200 Oiveralfed musl maketrades to eam a morithly operating inome of $1,20 Now compute the dolar revenues needed to eam a monthly target proft of $11,200 Diversified needs S After you hit continue the screen may take you below the beginning of the next step. If so, soroll back up to the lop of the sep.) Requirement 3. Graph Diversifieds CVP relationships. Assume that an average trade leads to $800 in revense for Diversified. Show the breakeven point, the sales revenue line, the fxed coet lne, the total coet lire, n revenues to ean a monthly operating income of $11,200. the operating lass area, the operating income area, and the sales in units (trades) and doliars when monthly operalting income of $11.200 is eamed We ill begin graphing the CVP relationships by first ploting the two points breakeven point and the point where monhly cperating income of $11,200 ls eamed. (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 ploted) Nest plot the tolowing lnes: the sales revenue line, foxed cost line, and the total cost line. Review your answers from Requirements 1& 2 and use onily those caloulatiors to delermine the appropriate poirts to plot the required lines.(Erlangethe graph to medum size and use the line tool buton dspyed below to draw gaph Besure to select a label for each line drawn.) T0 10 20 30 40 50 60 To Cick to enlarge Di orsified in tor Group is oper ng an office in Portia d Onogor. Fud mo thly costs aro omce r nt 600). depoaation on of ce furniture $1.400 usities $2.000 special telecre e l es S 1,100). a connection weh an online brokerage servce ($2,400 and the salary d a financial par er S 125Vanat e costs include payments to the financal plannere% of re erue advertai g 13% of re enue supplies and p stage (3% of revene), and usage fees tr the telephone lines and companted brokerage servee (6% of revenue) Read the reauirements The finai step ih our graph is to determine where the operating income and the operating loss areas are on the graph that you prevlousy preparedReview the graphs and deermine which has the comect shaded areas labeled for income and loss. (Enlarge each graph beflore selecting your answer) B. O D. 1020 304000 08 920 30435000 00 (Trade Requirement 4. Suppose that the average revenue Diversified eams increases to $2,000 par trade. Compute the new breakeven point in trades How does this afflect the breakeven port Uniter now assumptions, Dweriod mat make trades to break eve. With the increase in the average revenue per trade, the breakeven point in number of trades