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. What is Wanda’s contribution margin? How much does she need in monthly sales to break even? How much does she need in monthly sales to make a profit of $4,000? Construct a break-even chart for Wanda’s health-food store.

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. What is Wanda’s contribution margin? How much does she need in monthly sales to break even? How much does she need in monthly sales to make a profit of $4,000? Construct a break-even chart for Wanda’s health-food store.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter9: Deductions: Employee And Self- Employed-related Expenses

Section: Chapter Questions

Problem 49P

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