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Mary's Plants operates a large florist shop. Currently, the shop only sells one plant Flytrap. Prices and costs are as follows: the Venus Selling price
Mary's Plants operates a large florist shop. Currently, the shop only sells one plant Flytrap. Prices and costs are as follows: the Venus Selling price $100 Variable costs $60 Fly Trap Mary incurs $10,000 in monthly fixed costs related to the shop, and earns $15,000 in operating income per year UPLOAD DUE OCT 10, 20 points PART 1 REQUIREMENTS 1. Compute the breakeven point in terms of the number of fly traps that must be sold per year 2. Mary's investors require operating income of $70,000 per year to meet their return on investment criteria. How many plants must Mary sell? Calculate the number of fly traps that the shop is currently selling and compare the difference to the sales needed to achieve the target operating income. 3. Mary thinks she can reduce her fixed costs $4,000 per month by moving to a smaller space. Will she meet the operating income requirements by making this change
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