## Calculate the break-even point, Financial Management

Assignment Help:

A Video Rental store has two employees. The Supervisor is paid \$2,200 per month. The other employee, Mark is paid \$1,200 per month. In addition, Mark is paid a commission of 20 cents per video that is rented. Other monthly costs are:

• Store rent \$1,000 plus 10 cents per rented video

• Depreciation on videos \$1,000

• Utilities \$400

• The rental fee for a movie is \$2.00

All answers to the questions below must cite relevant supporting formulas used and show all detailed calculations showing the exact steps on how each of the answers were calculated in Microsoft Word format:

a) Calculate the variable cost per rented video and the total monthly fixed costs.

b) Calculate the break-even point in units and dollars.

c) Calculate the margin of safety and the margin of safety ratio, assuming 5,000 videos are rented in a month.

d) Calculate the rentals required to earn net income of \$2,000.

#### Control ratios, Control ratios: Three important ratios are usually used by...

Control ratios: Three important ratios are usually used by the management to find out whether the variations from budgeted results are unfavorable or favorable.  These ratios are

#### Graphic presentation of organisation of finance function, Q. Graphic Presen...

Q. Graphic Presentation of Organisation of Finance Function? Graphic Presentation of Organisation of Finance Function: - The following chart describes the organization of the f

#### Treasury bills, T-Bills are issued to enable the government to tide o...

T-Bills are issued to enable the government to tide over short-term liquidity requirements with maturities varying from a fortnight to a year. These instruments a

#### Sophisticated methods of mortgage backed security valuation, MBS ...

MBS are the most complicated securities that are sensitive to interest rates. The factors that affect the price of MBS are varied and most of th

#### Calculate the net present value, NPV and Other Criteria Waddington Inter...

NPV and Other Criteria Waddington International Inc. has \$20 million to invest. It is considering whether to build a new factory in Western Canada. The land and the building wil

#### Stakeholders, identify five stakeholder groups and breifly explain their fi...

identify five stakeholder groups and breifly explain their financil and other objectives

#### Major advantages of preparing a statement of cash flow, QUESTION 1 ...

QUESTION 1 Part A i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases ii) When accounting for fina

#### Accept-reject rule, Accept-Reject Rule: The decision rule is to accept ...

Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard.  If not, reject it.  While ranking the projects, projec

#### Why business spend time, Why do businesses spend time, effort, and money to...

Why do businesses spend time, effort, and money to produce forecasts?  Explain. Businesses succeed or fail relies on how well organized they are to deal with the situations they

#### State a process for benchmarking, State a process for benchmarking 1.  ...

State a process for benchmarking 1.  Gain senior management commitment to establish benchmarking as a process within the organisation and educate stakeholders and staff about t