Diversified Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,500), depreciation on office fumiture ($1,400), utilities ($2,200), special telephone lines ($1,500), a connection with an online brokerage service ($2,500), and the salary of a financial planner ($18,900). 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. Requirement 1. Use the contribution margin ratio approach to compute Diversified's breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for Diversified, how many trades must be made to break even? break even. (Abbreviation used: CM = contribution margin.) Begin by showing the formula and then entering the amounts to calculate the required sales dollars for Diversified + Target profit CM ratio Fixed costs = Required sales in dollars )/ Requirements 35,000 70 50,000 )/ Diversified must make trades to break even. 1. Use the contribution margin ratio approach to compute Diversified's breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for Diversified, how many trades must be made break even? 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600. 3. Graph Diversifled's CVP relationships. Assume that an average trade leads to $1,000 in revenue for Diversified. 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 Diversified eams 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.) Enter any number in the edit fields and then click Check