Question
Paul manages an electronics store where customers can purchase phones, tablets, or accessories for their technology needs. He Is trving to plan for future prontability
Paul manages an electronics store where customers can purchase phones, tablets, or accessories for their technology needs. He Is trving to plan for future prontability and came upon a break-even number (80 units in monthly sales) that his predecessor. Annie. hac calculated. Unfortunatelv. Paul found no other supporting calculations or details to determine how many of those units were phones.
tablets, and accessories.
Realizing that he needs as much cost. volume. and revenue information as possible. Paul dug up the following information for the store;
Phones Tablets Accessories
Selling price. $880 $530 $110
Variable cost/unit. 440 318 22
Other monthly fixed store costs
Salaries. $8,468
Rent $4.300
Depreciation $2,600
MaIntenance $1,100
Insurance $900
Utilities $600
He also determined that 25% of sales volume generally is from tablets. Additionally, customers usually purchase 1.5 times as many accessories as they do phones.
For future planning purposes, help Paul determine how many units of each product the store needs to sell in order to make a monthly operating profit of $13,476
Phones. __________ units
Tablets. __________ units
Accessories. _______ units
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