Question: Please help me to solve this problem, juts requirement 3 and give me the correct answer, thank you so much. Planning Specialists Investors is opening
Please help me to solve this problem, juts requirement 3 and give me the correct answer, thank you so much.

Planning Specialists Investors is opening an office in Charlotte, North Carolina. Fixed monthly expenses are office rent ($2,700), depreciation on office furniture ($280), utilities ($250), special telephone lines $600 a subscription to an online brokerage service $650 and the salary of a financial planner $2,520 Variable expenses include payments to the financial planner 12% of revenue), advertising (4% of revenue), supplies and postage (3% of revenue), and usage fees for the telephone lines and computerized brokerage service (11% of revenue). Read the requirements. The dollar revenues needed to earn monthly operating income of $3,500 is$15,000 Requirement 3. Graph Planning Specialists's CVP relationships. Assume that an average trade leads to $500 in revenue for the firm. Show the breakeven point, sales revenue line, fixed expense line, total expense line, operating loss area, operating income area, and sales in units (trades) and dollars when monthly operating income of $3,500 is earned. The graph should range from 0 to 40 units (trades). We will begin graphing the CVP relationships by first plotting the two points: breakeven point and the point where monthly operating income of $3,500 is earned. (Round amounts to be graphed to the nearest tenth of a thousand dollar, i.e. $7,250 would be $7.3. Enlarge the graph to medium size and use the point tool button displayed below to draw the graph.) Requirements 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for Planning Specialists, how many trades must it make to breakeven? Compute dollar revenues needed to earn monthly operating income of $3,500. Graph Planning Specialists's CVP relationships. Assume that an average trade leads to $500 in revenue for the firm. Show the breakeven point, sales revenue line, fixed expense line, total expense line, operating loss area, operating income area, and sales in units (trades) and dollars when monthly operating income of $3,500 is earned. The graph should range from 0 to 40 units (trades). Assume that the average revenue that Planning Specialists Investors earns decreases to $400 per trade. How does this affect the breakeven point in number of trades? 2. 3. 0 5 10 15 20 25 30 35 40 Units (Trados) Click to enlarge ra 4. Print Done Click the graph, choose a tool in the palette and follow the instructions to
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
