Wanda wants to open a health-food store. Her monthly expenses are rent $3,500, utilities of $1,000, insurance

Fantastic news! We've Found the answer you've been seeking!

Question:

Wanda wants to open a health-food store. Her monthly expenses are rent $3,500, utilities of $1,000, insurance of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself.

What is Wanda’s contribution margin?

How much does she need in monthly sales to break even?

How much does she need in monthly sales to make a profit of $4,000?

Construct a break-even chart for Wanda’s health-food store