Homework: Chapter 7 Homework (required) Score: 0.57 of 1 pt 12 of 12 (12 complete HW Score: 88.98%, 10.68 of 12 pts P7-64A (similar to) Question Help Planning Partners Investors is opening an office in Philadelphia, Pennsylvania, Fed monthly expenses are officerent 2.0001, depreciation on office umire (52701 (280). special telephone lines (5610), a subscription to an online brokerage service ($650), and the salary of a financial planner (2190) Variable expenses include payments to the financial plaer (14% of g ue advertising 17% of revenue supplies and postage (% of revenue and usage fees for the telephone lines and completed brokerage service (10% of revenue) Read the regiments Requirement 1. Compute the investment firm's breakeven revenue in dollars, the average trade lads to 1500 in revenue for Plaving Partners, how many trades must make to breakeven? First identify the formula to calculate the breakeven point in dollars Faxed expenses Operwing income ) Contribution margin ratio - Breakeven sales Planning Partners investors' breakeven revenue in dollars is 10.000 Planning Partners Investors must make 20 wades to break even Requirement 2. Compute dollar revenues needed to a monthly operating income of $5.400 Begin by identifying the formulato compute the operating income Sales revenue - Variable expenses - Fleed expenses . Operating income The dar va d ed to sam monthly operating income of $5.400 Entrany number in the edit fields and then click Check Answer Check Antwer 4 g adelphia, Pennsylvania. Fixed monthly expenses are office rent ($2,000), depreciation on office furniture ($270), utilities ($280 planner ($2,190). Variable expenses include payments to the financial planner (14% of revenue), advertising (7% of revenue), 16% of revenue). seven revenue in dollars. If the average trade leads to $500 in revenue for Planning Partners how many trades must it make to b oint in dollars A Requirements g income dollars is $ trades to break to earn monthly 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for Planning Partners, how many trades must it make to breakeven? 2. Compute dollar revenues needed to earn monthly operating income of $5,400. 3. Graph Planning Partners's CVP relationships. Assume that an average trade leads to $500 in revenue for the firm. Show the breakeven point, sales revenue line, fixed expense line, total expense line, operating loss area operating income area, and sales in units (trades) and dollars when monthly operating income of $5,400 is eamed. The graph should range from 0 to 40 units (trades) 4. Assume that the average revenue that Planning Partners Investors earns decreases to $400 per trade. How does this affect the breakeven point in number of trades? erating income. enses - rating income of Print [Done] Print Done click Check
