Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Market Time imestoes is epening an offce in Orlando; Florida. Fixed monthly expenses are office tent ($2,900) depreciation on effice furniture ($330) utlities ($270) speolal

image text in transcribed
Market Time imestoes is epening an offce in Orlando; Florida. Fixed monthly expenses are office tent (\$2,900) depreciation on effice furniture (\$330) utlities (\$270) speolal telephone lines i 6690 ) revenue), supplies and postage (2\% of revenue), and usage fees foe the telephone ines and conputerized beokerage service (a\% of revenve) Fend the ceguenments Requirement 1. Compute the investment fimis breakeven revenve in dolars. If the average frade hads to $500 in revenue for Market Tene. how many trades muat it make to breakeven? Fint identify the formula to calculate the breskeven point in dollars F Faxdexpecses + Operating income ) Market Time lmwenors' breakeven revenue ic dolars is Requirements 1. Compuit the invesinent fmmis breskeven revenue is dollus. It ene average trade leads to 5500 in revenue for Market Time, how many rrades mott a make to breaheven? 2. Compute dolar revenues needed to eam monhly operatirg inceme of 56.260 3. Graph Market Tims's CVP relasionshiph. Assume that an average vade leads to ssoo in revenve for the firm. show the breakeven poim, sales revenue ins, fixed expense ine, tobal eupense line. coerating loss area, operaing income area, and tales in unats (wades) and dollars when mentefly coeraking income of 55 .2s0 is earned. The graph Mhoud range frem 0 to 40 unhth (tratee) 4. Asume hat the average revenue tha Moket Tiene inesoss earnt decreases 10 5300 per trade How does this affect the breakeven point in number ot trodes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Companies Audit Investigations And Community Enterprise Act 2004 UK

Authors: The Law Library

1st Edition

1987582950, 978-1987582956

More Books

Students also viewed these Accounting questions

Question

What personal qualities do leaders need? Explain.

Answered: 1 week ago