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New Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,400), depreciation on office furniture ($1,600), utilities ($2,.200). special

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New Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,400), depreciation on office furniture ($1,600), utilities ($2,.200). special telephone lines ($1,000), a connection with an online brokerage service ($2,500), and the salary of a financial planner ($12,300). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue supplies and postage (4% of revenue), and usage fees for the telephone line$ and computerized brokerage service (6% of revenue). Read the requirements Requirement 1. Use the contribution margin ratio approach to compute New's breakeven revenue in dollars. If the average trade leads to $800 in revenue for New how many trades must be made to break even? contribution Begin by showing the formula and then entering the amounts to calculate the required sales dollars for New to break even. (Abbreviation used: CM margin.) )1 Required sales in dollars Requirements 1. Use the contribution margin ratio approach to compute New's breakevern revenue in dollars. If the average trade leads to $800 in revenue for New, how many trades must be made to break even? Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $11,200. Graph New's CVP relationships. Assume that an average trade leads to $800 in revenue for New. Show the breakeven point, the sales revenue line the fixed cost line, the total cost line, the operating loss area, the operating income area, and the sales in units (trades) and dollars when monthly operating income of $11,200 is earned. 2. 3. 4. Suppose that the average revenue New earns increases to $2,000 per trade. Compute the new breakeven point in trades. How does this affect the breakeven point? Round your answers to the nearest whole number.) Print Done

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