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Save Planning Partners Investors is opening an office in Atlanta, Georgia. Fixed monthly expenses are office rent ($2,000), depreciation on office furniture ($270), utilities
Save Planning Partners Investors is opening an office in Atlanta, Georgia. Fixed monthly expenses are office rent ($2,000), depreciation on office furniture ($270), utilities ($280), special telephone lines ($610), a subscription to an online brokerage service ($650), and the salary of a financial planner ($2,190). Variable expenses include payments to the financial planner (14% of revenue), advertising (7% of revenue), supplies and postage (3% of revenue), and usage fees for the telephone lines and computerized brokerage service (1% of revenue). Read the requirements. Requirement 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for Planning Partners, how many trades must it make to breakeven? First identify the formula to calculate the breakeven point in dollars. + = = Breakeven sales
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