Please solve these 3 questions:

10) This hypothetical applies to the next three questions) While obtaining your MBA you decide to contract part- time with the Washburn Small Business Development Center Your first client (Bob) is losing money and requests your help trying to out what is wrong financially Bob owns a retail store specializing in designer eyeglass frames Upon entering the store, customers are met by a store manager who helps the customer select and fit a frame. The store manager is on salary. Once an order is placed, a technician makes the lenses in a small lab located onsite. The technician is paid per order and made $ 16,000 for the year part- time. Bob incurs extra expenses for the lab only when it is in use, including extra utilities and supplies of $ 500 per month. Frames are usually completed within 2 days for pickup. The Profit and Loss Statement for the most recent year is as follows:

Sales $ 151,382

COGS $ 83,994

Gross Profit $ 67,388

Payroll $ 40,265

Advertising $ 12,847

Other Expenses $ 39,833

Operating Profit ($25,692)

Calculate break -even for Bob. (SHOW YOUR WORK)

11) Bob is troubled by your news, but has an idea He is convinced the store manager is not cutout for sales and estimates that they lose one out of every three customers who come into the store. He is confident hiring retail sales help would lead to an increase in sales of $50,000. He estimates that he would have to pay $20,000 a year (including benefits), netting $30,000 in profits. Should he do this and why? (SHOW YOUR WORK)

12) Bob laments that his goal is a return on the investment he made when he bought the business Bob would like to net $ 25,000 per year in profits he does not hire the retail help, what would sales have to equal to achieve his goal? SHOW YOUR WORK )