Just For Me Investors is opening an office in Newark, New Jersey. Fixed monthly expenses are office rent ($2,600), depreciation on office furniture ($270), utilities ($290), special telephone lines ($650), a subscription to an online brokerage service ($700), and the salary of a financial planner ($4,490). Variable expenses include payments to the financial planner (10% of revenue), advertising (5% of revenue), supplies and postage (2% of revenue), and usage fees for the telephone lines and computerized brokerage service (8% of revenue). Read the requirements Requirement 3. Graph Just For Me'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 $5,250 is earned. The graph should range from 0 to 40 units (trades). We will begin graphing the CVP relationships by first plotting the two points: breakeven point and the point where monthly operating income of $5,250 is earned. (Round amounts to be graphed to the nearest tenth of a thousand dollar, i.e. $7,250 would be $7.3. Enlarge the graph to medium size and use the point tool button displayed below to draw the graph.) 20- Requirements - X Dollars (Thousands) Breakeven point 3. Graph Just For Me'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 $5,250 is earned. The graph should range from 0 to 40 units (trades). 4. Assume that the average revenue that Just For Me Investors earns decreases to $300 per trade. How does this affect the breakeven point in number of trades? Monthly income is earned Click to enlarge graph Print Done 0+ 0 5 10 15 20 25 30 35 40 Just For Me Investors is opening an office in Newark, New Jersey. Fixed monthly expenses are office rent ($2,600), depreciation on office furniture ($270), utilities ($290), special telephone lines ($650), a subscription to an online brokerage service ($700), and the salary of a financial planner ($4,490). Variable expenses include payments to the financial planner (10% of revenue), advertising (5% of revenue), supplies and postage (2% of revenue), and usage fees for the telephone lines and computerized brokerage service (8% of revenue). Read the requirements Requirement 3. Graph Just For Me'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 $5,250 is earned. The graph should range from 0 to 40 units (trades). We will begin graphing the CVP relationships by first plotting the two points: breakeven point and the point where monthly operating income of $5,250 is earned. (Round amounts to be graphed to the nearest tenth of a thousand dollar, i.e. $7,250 would be $7.3. Enlarge the graph to medium size and use the point tool button displayed below to draw the graph.) 20- Requirements - X Dollars (Thousands) Breakeven point 3. Graph Just For Me'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 $5,250 is earned. The graph should range from 0 to 40 units (trades). 4. Assume that the average revenue that Just For Me Investors earns decreases to $300 per trade. How does this affect the breakeven point in number of trades? Monthly income is earned Click to enlarge graph Print Done 0+ 0 5 10 15 20 25 30 35 40
