Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose a small business has sales of $12,000 this month, with future sales expected to grow by $1,500 each month. Costs consist of a

Suppose a small business has sales of $12,000 this month, with future sales expected to grow by $1,500 each month. Costs consist of a fixed component, which is $6,000 per month, and a variable component, which is 30 percent of sales. Design a spreadsheet to compute the gross profit (revenue less fixed and variable costs) per month over a nine month period. What is the gross profit in a single month 5 months from now?

Step by Step Solution

3.36 Rating (128 Votes )

There are 3 Steps involved in it

Step: 1

Month 1 2 3 4 5 10 6 7 8 9 Sales 12000 13500 15000 16500 18000 19500 21000 22500 24000 Fixed Costs ... blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial statements

Authors: Stephen Barrad

5th Edition

978-007802531, 9780324186383, 032418638X

More Books

Students also viewed these Accounting questions