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How much would the average sales ticket have to increase to break-even if the fixed cost remained the same in 2007 as it was in
How much would the average sales ticket have to increase to break-even if the fixed cost remained the same in 2007 as it was in 2006?
Exhibit 1 Hallstead Jewelers; Income Statements for Years Ended January 31 (thousands of dollars) 2003 2004 2006 $8,583 4326 $4,257 Sales Cost of goods sold Gross margin Expenses Selling expense Salaries Commissions Advertising Administrative expenses Rent Depreciation Miscellaneous expenses Total expenses Net income $8,102$10,711 4132 5.570 $3,9705,141 2,021 429 254 418 420 84. 2,081 405 250 425 420 84. 3,215 536 257 435 840 142 $3,679 $ 578 $3,758$ 5,547 $ 212 (406) Source Casewriter Exhibit 2 Hallstead Jewelers Operating Statistics 2003 2004 2006 Sales space (square feet) Sales per square foot Sales tickets Average sales ticket 10,230 $ 839 792 5,316 $1,607 $1,524 15,280 701 6,897 1,553 10,230 5,341Step by Step Solution
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