Requirement 1. How much in sales does Cooley's need to break even on the Great Big Home + Garden Show, assuming that the booth rental fee is the only fixed cost of the show?

Identify the formula and then compute the break even point in dollars. (Complete answer boxes. Enter a "0" for any zero amounts. Enter ratios, if any, as a decimal to two places, X.XX.)

Break even sales

(

Fixed expenses

+

Operating income

) /

Contribution margin ratio

=

in dollars

(

6075

+

0

) /

0.45

=

13500

Requirement 2. The Great Big Home + Garden Show runs for

ten days. How much, on average, must

Cooley's sell each day of the show to break even?

Cooley's must sell $135 each day to break even.

Requirement 3. Assume that

400,000

people visit the home and garden show each year spread evenly throughout the

ten-day period. If

22%

of the attendees purchase from Cooley's

at the show, how much must each customer purchase from Cooley's

for the company to break even on the booth rental fee?

Identify the formula and then compute the purchase amount needed per customer. (Round your answer to the nearest cent.)

Break even sales in dollars

/

Total number of customers

=

Purchase amount per customer

13500

/

8000

=

1.69

Requirement 4. Assume now that

Cooley's wants to make a target profit of

$4,500 for the Great Big Home + Garden Show. What sales volume will allow Cooley

Cooley's to achieve this target profit?

Cooley's sales volume must be $____?

to achieve the target profit.

Hi. I wanted the formula for the last question ONLY in Requirement 4. Thank you :)