Mark is very interested in beach sand in Florida. He wants to start a business selling jars of beach sand to tourists. His sales price per jar is $2.50 and estimated costs are: Jar Cap Label Sales commission to retailers Excavating machine rent Mark's salary (President) $.40 per item $.10 per item $.30 per item $.20 per item $500 per month $1,000 per month 1. a. What is Mark's breakeven point for the year, in terms of both quantity and sales dollars on a pretax basis? b. Mark wants to make a target profit of $25,000 before taxes for the year. How many jars of beach sand would he need to sell? c. If Mark can generate revenues of $50,000, what is his margin of safety in both dollars and sales quantity for the year? d. If Mark generates revenues of 50,000 what is his operating leverage for the year?

Mark is very interested in beach sand in Florida. He wants to start a business selling jars of beach sand to tourists. His sales price per jar is $2.50 and estimated costs are: 1. a. What is Mark's breakeven point for the year, in terms of both quantity and sales dollars on a pretax basis? b. Mark wants to make a target profit of $25,000 before taxes for the year. How many jars of beach sand would he need to sell? c. If Mark can generate revenues of $50,000, what is his margin of safety in both dollars and sales quantity for the year? d. If Mark generates revenues of 50,000 what is his operating leverage for the year