posted by sandra
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.
a. What is Wanda’s contribution margin?
b. How much does she need in monthly sales to break even?
c. How much does she need in monthly sales to make a profit of $4,000?
d. Construct a break-even chart for Wanda’s health-food store.