Gails Gift store sells items for an average selling price of $50 per unit and a...
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Gails Gift store sells items for an average selling price of $50 per unit and a variable cost of $30 per unit. Costs included: • Selling cost per unit, $21 • Other costs per unit, $9 Rent, $1,500 per month Utilities, $800 per month • Salaries, $3,000 per month Required 1. Calculate the break even point in units and in sales dollars 2. Suppose the company would like to earn a target net income of $10,000. Calculate the number of units and sales dollars the company needs to achieve for the target net income. Gails Gift store sells items for an average selling price of $50 per unit and a variable cost of $30 per unit. Costs included: • Selling cost per unit, $21 • Other costs per unit, $9 Rent, $1,500 per month Utilities, $800 per month • Salaries, $3,000 per month Required 1. Calculate the break even point in units and in sales dollars 2. Suppose the company would like to earn a target net income of $10,000. Calculate the number of units and sales dollars the company needs to achieve for the target net income.
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