The fixed cost of running a gift store (wages, rent, etc.) in a particular mall is $250,000 per year. The gross margin (i.e., sales - cost of goods sold or alternatively revenue - variable cost) is 45 percent of sales. Assuming store is open 364 days a year,
a. What are the minimum daily sales to break even?
b. If the owner's profit target is 10 percent of sales, what are the minimum daily sales to breakeven?
c. If the owner's profit target is $100,000 per year, what are the minimum daily sales to break even?