Given the followeng information, perform a simple, annual break even analyis State the formula, determine the annual ales feque and the number of total customers required if the break-evern point was to be reached at the end of the first year. Show all your calculations Expenses and Costs Rent is $2,000/month Professional fees are 52.000/yr. Equipment is $11,000/yr. which has a depreciation of 20yr Insurance is $1,000/yr. Wages are $18,000/yr. plus a 5% sales commission Start-up inventory is $4,000. Cost of Goods is 35% of sales. Average purchase amount per paying customer is $100. One out of every two potential custormers who enter the store wll be a paying customer. What is the break-even sales figure? How many potential customers will the business require to break-even?

Given the followeng information, perform a simple, annual break even analyis State the formula, determine the annual ales feque and the number of total customers required if the break-evern point was to be reached at the end of the first year. Show all your calculations Expenses and Costs Rent is $2,000/month Professional fees are 52.000/yr. Equipment is $11,000/yr. which has a depreciation of 20yr Insurance is $1,000/yr. Wages are $18,000/yr. plus a 5% sales commission Start-up inventory is $4,000. Cost of Goods is 35% of sales. Average purchase amount per paying customer is $100. One out of every two potential custormers who enter the store wll be a paying customer. What is the break-even sales figure? How many potential customers will the business require to break-even?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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