Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz solve both Illustration 18: Mr. Young has 1,50,000 investment in a business. He wants a 15% profit on his money. From an analysis of

image text in transcribed

plz solve both

Illustration 18: Mr. Young has 1,50,000 investment in a business. He wants a 15% profit on his money. From an analysis of recent cost figures he finds that his variable cost of operating is 60% of sales; his fixed costs are 75,000 per year. Show supporting computations for each answer. (a) What sales volume must be obtained to break-even? (b) What sales volume must be obtained to his 15% return on investment? (c) Mr. Young estimates that even if he closed the doors of his business he would incur 25,000 expenses per year. At what sales would be better off by locking his sales up

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

Step: 3

blur-text-image

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

Contemporary Issues In Social Science

Authors: Simon Grima, Ercan Özen, Hakan Boz

1st Edition

1800439318, 9781800439313

More Books

Students also viewed these Accounting questions