Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store: Sales price per cooker . . . . . . . . . . . $50 Variable expenses per cooker. . . . . . $16 Fixed expenses per year: - - - Building rental . . . . . . . . . . . . . . $12000 - - - Equipment depreciation . . . . . . $5300 - - - Selling . . . . . . . . . . . . . . . . . . . . . $15500 - - - Administrative . . . . . . . . . . . . . . $17000 d. Refer to the original data, the number of cookers to be sold each year to break even is
Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store:
Sales price per cooker . . . . . . . . . . . $50
Variable expenses per cooker. . . . . . $16
Fixed expenses per year:
- - - Building rental . . . . . . . . . . . . . . $12000
- - - Equipment depreciation . . . . . . $5300
- - - Selling . . . . . . . . . . . . . . . . . . . . . $15500
- - - Administrative . . . . . . . . . . . . . . $17000
d. Refer to the original data, the number of cookers to be sold each year to break even is
(f)
Refer to the original data, Kowkeela now has two salespersons working in the store—one full time and one part time. It will cost her an additional $7700 per year to convert the part-time position to a full-time position. Kowkeela believes that the change would bring in an additional 681 unit sales each year. If this change is made, the new net income will be $
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