of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself. a. What is Wanda’s contribution margin? . b. How much does she need in monthly sales to break even? c. How much does she need in monthly sales to make a profit of $4,000? d. Construct a break-even chart for Wanda’s health-food store.
of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself. a. What is Wanda’s contribution margin? . b. How much does she need in monthly sales to break even? c. How much does she need in monthly sales to make a profit of $4,000? d. Construct a break-even chart for Wanda’s health-food store.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8. Wanda wants to open a health-food store. Her monthly expenses are rent $3,500, utilities of $1,000, insurance of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself.
a. What is Wanda’s contribution margin? .
b. How much does she need in monthly sales to break even?
c. How much does she need in monthly sales to make a profit of $4,000?
d. Construct a break-even chart for Wanda’s health-food store.
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