Joe's Coffee House has the following information available for the month of July:

Sales $7,500

Variable costs 3,250

Contribution Margin 4,250

Fixed costs 4,000

Net Income $250

1) Using the Y-formula, and rounding the CMR to 2 decimal places (do not round up), calculatebreakeven sales dollars for Joes Coffee House.

A. $6,943 B. $7,143 C. $7,343 D. $7,543

2) Using the Y-formula, and rounding the CMR to 2 decimal places (do not round up), calculatesales dollars for Joes Coffee House in order to earn a target net income equal to 16% of sales.

A. $7,000 B. $8,000 C. $9,000 D. $10,000

3) Using the first shortcut trick that you were taught, if Joe's Coffee House increases the sales price

per unit by 10%, net income will:

A. Increase by $425. B. Increase by $750. C. Increase by $75. D. Not change.

4) Using the second shortcut trick that you were taught, if Joe's Coffee House increases sales by 10%, net income will:

A. Increase by $425. B. Increase by $750. C. Increase by $75. D. Not change.