Mary Baldwin College Operations And Supply Chain Management Assignment Help - Breakeven and sales

Question - Melissa Valdez is planning to expand her clothing business by opening another store. In planning for
the new store, Melissa believes that selling prices and costs of the various products sold will be simlar
to that of the existing store. In fact, she thinks that variable and fixed costs for the new store will be
similar to that of the existing store, except that rent for the new store will be $300 per month more
than the rent paid for the existing store. The followig information is available for the existing store for
the year ended December 31, 2004:

Sales $200,00
Variable cost 130,000
Fixed cost 48,800

Deteremine the sales required for the new store to break even. Determine the sales required for the
new store to earn a prof ...Read More it of $20,000 per year (keep in mind that the $300 increase in rent is a
monthly amount and the fixed cost of $48,000 is an annual amount) ...Read Less

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