Shari Kay owns and operates Perfect Petals, a successful florist shop in Bloomington, Indiana. Shari estimates that
Question:
Shari Kay owns and operates Perfect Petals, a successful florist shop in Bloomington, Indiana. Shari estimates that her variable costs are $0.25 per sales dollar (i.e., variable costs represent 25% of revenue) and that her fixed costs amount to $6,000 per month.
Required:
a. How much revenue does Shari need to generate each month to break even?
b. How much profit per month would Shari earn if her revenues were $10,000 per month?
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Related Book For
Managerial Accounting
ISBN: 978-1118385388
2nd edition
Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle
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