Question

Susannah Chardon is thinking about starting an upscale gift basket service. She would create gift baskets for corporate clients and then arrange for delivery. She is trying to decide if the gift basket service would be profitable. Unfortunately, Chardon’s hard drive crashed before she finished her financial analysis. However, she did recover the following partial CVP chart:
Requirements
1. Label the axes, sales revenue line, total expense line, fixed expense line, operating income area, and operating loss area.
2. If Susannah sells 825 gift baskets in her first year, will the venture be profitable?
3. What are the break-even sales in baskets and dollars?


$1.99
Sales0
Views27
Comments0
  • CreatedApril 30, 2015
  • Files Included
Post your question
5000