Question
Vanessa wants to open a Vitamin Shop. She will pay rent of $3,600 per month, utilities of $300 per month, insurance of $150 per month,
Vanessa wants to open a Vitamin Shop. She will pay rent of $3,600 per month, utilities of $300 per month, insurance of $150 per month, and salaries of $2,000 per month. She estimates that her cost of goods will be approximately 35 percent of sales. She would like to make $3,000 a month for herself. Should she use the break-even quantity method or the break-even dollar method? What are Vanessa's fixed costs?
What is Vanessa's contribution margin? Enter as a decimal, 2 decimal places, ex. 90% you would enter as .90
How much does Vanessa need in monthly sales to break-even? Enter your answer with 2 decimal places, ex 3000.00 , no dollar sign.
How much does Vanessa need in monthly sales to make a profit of $3,000? Enter your answer with 2 decimal places, ex 3000.00 , no dollar sign.
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