Marco's Movie Emporium has been doing very well since opening its store 3 years ago. Marco sells older and classic movies on CDs at a reduced price. The 2018 income statement is provided below. Marco is contemplating opening a second location, expecting to increase revenues by 55% in 2019. To make this happen, expenses will also increase: Salaries by $120,000, Rent by $250,000, utilities by $50,000 and other expenses by $45,000.

Remaining Time: 2 hours, 37 minutes, 31 seconds. Question Completion Status: Marco expects to have 12,000 subscribers in year one. However, he also expects to cannibalize his CD sales by 5,000 units a year. BASE CDs + APP Marco's Movie Emporium Total 2018 CDs APP Units (CDs) 60,000 Sales $1,200,000 COGS $450,000 Gross Profit $750,000 Salaries $240,000 $240,000 Rent $248,000 $248,000 Utilities $32,000 $32,000 Other Expenses $75,000 $75,000 $600,000 Fixed Expenses $595,000 $595,000 $600,000 Net Profit $155,000 Break Even units/ Subscribers a Calculate Total combined Gross Profit (2 Marks) b Calculate Total combined Net Profit (2 Marks) c Calculate Break Even Units CDs ONLY (3 Marks)1 20 4 50 75 8 919 105 115 120 13 14 150 160 17 18 1962 at a reduced price. The 2018 income statement is provided below. Marco is contemplating opening a second increase revenues by 55% in 2019. To make this happen, expenses will also increase: Salaries by $120,000, utilities by $50,000 and other expenses by $45,000. 2019 with Marco's Movie 2018 Expansion Difference Emporium (Base Units (CDs) 60,000 Sales $1,200,000 COGS $450,000 Gross Profit Salaries $240,000 Rent $248,000 Utilities $32,000 Other Expenses $75,000 Fixed Expenses Net Profit Break Even units a Calculate Price/unit ( 2 Marks) b Calculate contribution per unit? ( 2 Marks) Click Save and Submit to save and submit. Click Save All Answers to save all answers. HOLOC-BOO