Anderson Dry Cleaners has determined the following about its costs: Total variable expenses are $ 42,000, total fixed expenses are $ 24,000, and the sales revenue needed to breakeven is $ 48,000. Determine the company’s current 1) sales revenue and 2) operating income.
Answer to relevant QuestionsSport Ready produces sports socks. The company has fixed expenses of $ 90,000 and variable expenses of $ 0.90 per package. Each package sells for $ 1.80. Requirements 1. Compute the contribution margin per package and the ...Refer to Grover’s Steel Parts in E7- 23A. Grover feels like he’s in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have in-creased raw material costs. Grover’s ...Ullie Medical Supply is a retailer of home medical equipment. Last year, Ullie’s sales reve-nues totaled $ 6,800,000. Total expenses were $ 2,600,000. Of this amount, approximately $ 1,088,000 were variable, while the ...Stancil’s Dry Cleaners has determined the following about its costs: Total variable ex-penses are $ 45,000, total fixed expenses are $ 30,000, and the sales revenue needed to breakeven is $ 40,000. Determine Stancil’s ...Gabby Kittson sells homemade knit scarves for $ 14 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees cost Gabby $ 1,400 per year. The craft shows are raising their ...
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