Risky Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent $($$$8,100),$ depreciation on office furniture $($$$1,400),$ utilities $($$$2,100),$ special telephone lines $($$$1,100),$ a connectior with an online brokerage service $($$$2,700),$ and the salary of a financial planner $($$$19,600).$ Variable costs include payments to the financial planner $(8\%$ of revenue$),$ advertising $(13\%$ of revenue$),$ supplies and postage $(3\%$ of revenue$),$ and usage fees for the telephone lines and computerized brokerage service $(6\%$ of revenue$).$

Read the requirements.

Requirement $1.$ Use the contribution margin ratio approach to compute Risky's breakeven revenue in dollars. If the average trade leads to $$1,250$ in revenue for Risky, how many trades must be made to break even?

Begin by showing the formula and then entering the amounts to calculate the required sales dollars for Risky to break even. $($Abbreviation used: $CM=$ contribution margin.$)$

Requirement $2.$ Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $$14,000.$

Begi$$ by selecting the formula to compute the required sales in units to earn a target profit.

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Target profit

Rearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $$14,000.$

Risky must make $$ trades to earn a monthly operating income of $$14,000.$