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Problem 1 Cost Behavior and Breakeven Analysis 10 points MSM Company sells clothing for young adults. The firm has normal monthly fixed costs of $140,000
Problem 1 Cost Behavior and Breakeven Analysis 10 points MSM Company sells clothing for young adults. The firm has normal monthly fixed costs of $140,000 ( $58,000 of this amount is fixed salaries). The firm's variable cost ratio averages 60%. The firm operates 3 stores in the mid Atlantic region. 1. What is the monthly level of sales dollars needed to breakeven? 2. What is the monthly level of sales dollars needed to earn a net operating profit (EBIT) of $18,000 monthly? 3. What is the monthly level of sales dollars needed to earn a net operating profit (EBIT) of 12% of sales monthly
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