Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that the cost of sales for them is 85%. You would like to invest $250,000 for marketing in your business How many customers must you get to breakeven? How many customers must you get to make a 10% operating profit? how would the income statement for this to be presented per unit sale $? per unit cost of sale number of customers needed to make 10% profit total sales $$ total cost of sales gross profit marketing investment operating profit operating profit margin in % ROI
Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that the cost of sales for them is 85%. You would like to invest $250,000 for marketing in your business How many customers must you get to breakeven? How many customers must you get to make a 10% operating profit? how would the income statement for this to be presented per unit sale $? per unit cost of sale number of customers needed to make 10% profit total sales $$ total cost of sales gross profit marketing investment operating profit operating profit margin in % ROI
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that the cost of sales for them is 85%. You would like to invest $250,000 for marketing in your business
How many customers must you get to breakeven?
How many customers must you get to make a 10% operating profit?
how would the income statement for this to be presented per unit sale $?
per unit cost of sale
number of customers needed to make 10% profit
total sales $$
total cost of sales
gross profit
marketing investment
operating profit
operating profit margin in %
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