Specify your assumptions about the following items: Number of hours you will work (no wages required) per day Number of hours you will pay an employee to work in the Snowie booth per day Number of days you anticipate opening the Snowie booth per month How many Snowies you estimate you will sell on an average day Calculate the breakeven point per month in units (number of Snowies sold) and sales dollars. Assume now that you want to earn a target profit of $2,000 before tax each month. How many Snowies must you sell to achieve that target profit? Now compare your budgeted sales to the break even sales. What is your margin of safety per month In terms of units (number of Snowies sold), sales dollars, and percentage? Now assume that Main Street Kent, an organization that hosts outdoor events in downtown Kent, approaches you about bringing your Snowie building to the October fest in Kent for one day in October. Main Street Kent will provide the cups for the event that are branded with the Kent October fest logo, so you will not have any cup costs for this one event Main Street Ken: will also not be charge you a registration fee for this event. Main Street Kent will allow you to advertise your business in its mailings for two months at no cost and asks you to cut your Snowie price for this one even: to $3 in exchange for the free advertising. You have no other event scheduled for this one day m October and you would work the event by yourself (you will not pay an employee for this one day event.) You anticipate that you will sell 300 Snowies on this one day at October fest. Do you accept Main Street Kent's special price offer? Why or why not? Support your answer. Specify your assumptions about the following items: Number of hours you will work (no wages required) per day Number of hours you will pay an employee to work in the Snowie booth per day Number of days you anticipate opening the Snowie booth per month How many Snowies you estimate you will sell on an average day Calculate the breakeven point per month in units (number of Snowies sold) and sales dollars. Assume now that you want to earn a target profit of $2,000 before tax each month. How many Snowies must you sell to achieve that target profit? Now compare your budgeted sales to the break even sales. What is your margin of safety per month In terms of units (number of Snowies sold), sales dollars, and percentage? Now assume that Main Street Kent, an organization that hosts outdoor events in downtown Kent, approaches you about bringing your Snowie building to the October fest in Kent for one day in October. Main Street Kent will provide the cups for the event that are branded with the Kent October fest logo, so you will not have any cup costs for this one event Main Street Ken: will also not be charge you a registration fee for this event. Main Street Kent will allow you to advertise your business in its mailings for two months at no cost and asks you to cut your Snowie price for this one even: to $3 in exchange for the free advertising. You have no other event scheduled for this one day m October and you would work the event by yourself (you will not pay an employee for this one day event.) You anticipate that you will sell 300 Snowies on this one day at October fest. Do you accept Main Street Kent's special price offer? Why or why not? Support your
