Mohsin owns a store downtown Kingston selling the World's Greats Coffee Cup. You are his accountant...
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Mohsin owns a store downtown Kingston selling the World's Greats Coffee Cup. You are his accountant and below is his income statement for the past year. World Greatest Coffee Cup Company Kingston Store For the Year Ended June 30, 2023 Sales Advertising Computers and IT Hydro and Utilities Insurance Manager Wages Merchandise purchase Misc. Rent Direct wages Total Expenses Profit (Loss) $ $ 339,546 15,985 2,565 3,152 12,985 45,985 225,950 9,856 24,000 35,956 376,434 (36,888) He wants to understand what he needs to do to improve the business to start making profit. Through conversation you also learn the following information about the business. • The volume was 13,600 coffee cups. The store is open 5 days a week Tuesday to Saturday all year long. Moshin's questions to you are: ● . How much does he need to sell just to break even in both sales and units? How much does the store needs to sell each day if he wants to make a $50,000 profit next year? He is not sure he can increase his sales volume any more than this year. What price per cup would he have to charge to make $50,000 profit next year? Mohsin owns a store downtown Kingston selling the World's Greats Coffee Cup. You are his accountant and below is his income statement for the past year. World Greatest Coffee Cup Company Kingston Store For the Year Ended June 30, 2023 Sales Advertising Computers and IT Hydro and Utilities Insurance Manager Wages Merchandise purchase Misc. Rent Direct wages Total Expenses Profit (Loss) $ $ 339,546 15,985 2,565 3,152 12,985 45,985 225,950 9,856 24,000 35,956 376,434 (36,888) He wants to understand what he needs to do to improve the business to start making profit. Through conversation you also learn the following information about the business. • The volume was 13,600 coffee cups. The store is open 5 days a week Tuesday to Saturday all year long. Moshin's questions to you are: ● . How much does he need to sell just to break even in both sales and units? How much does the store needs to sell each day if he wants to make a $50,000 profit next year? He is not sure he can increase his sales volume any more than this year. What price per cup would he have to charge to make $50,000 profit next year?
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Here are the calculations to address Mohsins questions 1 How much does he need to sell just to break ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
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