The following Information pertains to questions 89 to 90. JH Fashions leases a retail store in...

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The following Information pertains to questions 89 to 90. JH Fashions leases a retail store in a shopping center. In order to sell Its inventory, JH pays its staff a 3% commission on gross sales. John Henry, owner of JH Fashlons, expects a 25% return on investment and annual fixed costs of $225,000. John invested $300,000 to start up JH Fashlons. 89. JH Fashions has no variable costs, except for cost of goods, and sells clothing at a 55% gross margin. What revenue does JH need to generate to break even (rounded up to the nearest hundred dollars)? a) $500,000 b) $387,900 c) $292,200 d) $409,100 e) $432,700 90. How much revenue does JH Fashions need to generate to achieve John's required return on investment of 25% (rounded up to the nearest hundred dollars)? a) $432,700 b) $577,000 c) $545,500 d) $714,300 e) $517,300 The following Information pertains to questions 89 to 90. JH Fashions leases a retail store in a shopping center. In order to sell Its inventory, JH pays its staff a 3% commission on gross sales. John Henry, owner of JH Fashlons, expects a 25% return on investment and annual fixed costs of $225,000. John invested $300,000 to start up JH Fashlons. 89. JH Fashions has no variable costs, except for cost of goods, and sells clothing at a 55% gross margin. What revenue does JH need to generate to break even (rounded up to the nearest hundred dollars)? a) $500,000 b) $387,900 c) $292,200 d) $409,100 e) $432,700 90. How much revenue does JH Fashions need to generate to achieve John's required return on investment of 25% (rounded up to the nearest hundred dollars)? a) $432,700 b) $577,000 c) $545,500 d) $714,300 e) $517,300

Answer rating: 100% (QA)

First quiz The correct answer is A The revenue JH needs to break even is 500000 JH Fashions has ... View the full answer