1. Kate Demarest is considering abandoning her career as a college professor in favor of selling...
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1. Kate Demarest is considering abandoning her career as a college professor in favor of selling stand-up paddleboards on the Outer Banks. She has located a prime location in Avon, NC where she hopes to sell the paddleboards. Annual costs will include rent, insurance, and salaries for a total of $60,000. She expects that she can sell a mid-priced line of paddleboards at an average sales price of $875 per board, and she can purchase these boards from the manufacturer at a cost of $625 per board. (20 points) a. How many paddleboards must Kate sell per year to breakeven? b. Kate realizes that she cannot afford to forgo her enormous teaching salary to pursue her dream. If she wishes to earn $100,000 in operating income, how many standup paddleboards must she sell on an annual basis? C. Kate has decided to add a second line of paddleboards. The premium line paddleboards will sell for $1,225 each and have a cost of $725. Kate expects that she will sell three mid-priced paddleboards for every one premium. How many of each type of paddleboard must she sell to breakeven? 1. Kate Demarest is considering abandoning her career as a college professor in favor of selling stand-up paddleboards on the Outer Banks. She has located a prime location in Avon, NC where she hopes to sell the paddleboards. Annual costs will include rent, insurance, and salaries for a total of $60,000. She expects that she can sell a mid-priced line of paddleboards at an average sales price of $875 per board, and she can purchase these boards from the manufacturer at a cost of $625 per board. (20 points) a. How many paddleboards must Kate sell per year to breakeven? b. Kate realizes that she cannot afford to forgo her enormous teaching salary to pursue her dream. If she wishes to earn $100,000 in operating income, how many standup paddleboards must she sell on an annual basis? C. Kate has decided to add a second line of paddleboards. The premium line paddleboards will sell for $1,225 each and have a cost of $725. Kate expects that she will sell three mid-priced paddleboards for every one premium. How many of each type of paddleboard must she sell to breakeven?
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Related Book For
Federal Taxation 2015 Corporations Partnerships Estates & Trusts
ISBN: 9780133822144
28th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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