Calculate how many canvases anke needs to sell

Assignment Help Finance Basics

Reference no: EM131948677

Question: Breakeven analysis Anke Perks is opening an arts and crafts store that focuses on canvases, paints, and pencils. The selling price of a canvas is $24. The variable operating costs are $14 per canvas while the fixed operating costs are $4,000.

a. Calculate how many canvases Anke needs to sell to reach her operating breakeven point.

b. Calculate the total operating costs at the breakeven point based on part a.

c. Anke's business plan assumed that she would be able to sell 420 canvases per month. Will Anke be able to make a profit at this sales level?

d. How much EB1T will Anke generate it she sells 420 canvases per month?

Reference no: EM131948677

Questions Cloud

History of health insurance and managed care : Health insurance began in the early part of the twentieth century as a means to protect an organization's assets, either its financial assets or its manpower.

What problems as the financial planner : Antonio died last month and the initial estimate of his estate is $8,000,000. What problems as the financial planner, if any, do you observe? Explain

Describe the process by which a new tax law is passed : The Internal Revenue Code was formerly known as Title 26 of the U.S. Code. It is broken down into subtitles, chapters, sub chapters, parts, and sub-parts.

Explain the social challenges factors : Airline industry is faced with a variety of challenges today. Profoundly state and explain the social challenges factors and how they impact on the business.

Calculate how many canvases anke needs to sell : Breakeven analysis Anke Perks is opening an arts and crafts store that focuses on canvases, paints, and pencils. The selling price of a canvas is $24.

What counter-offer would you have to make to bank : what counter-offer would you have to make to the bank in order to achieve the 20% return?

How much money after tax : How much money after tax he can accumulate in the investment account at the end of year 5?

Explain what is meant by the term positioning : Choose one (1) product category you find interesting (e.g. pickup trucks, women's apparel, athletic shoes), and identify at least three different brands.

How low coupling and high cohesion enables modular design : Briefly explain how low coupling and high cohesion enables modular design. What is the main difference between a framework and a toolkit?

User Account

All Pages