Mohsin owns a store downtown Kingston selling the World's Greats Coffee Cup. You are his accountant and below is hisincome statement for the past year.World Greatest Coffee Cup CompanyKingston StoreFor the Year Ended June 30, 2023SalesS339,546Advertising15,985Computers and IT2,565Hydro and Utilities3,152Insurance12,985Mariager Wages45.985Merchandise225,950purchaseMisc.9,856Rent24,000Direct wages35,956Total Expenses376,434Profit (Loss)(36,888)He wants to understand what he needs to do to improve the business to start making profit. Through conversation youalso learn the following information about the business..The volume was 13,600 coffee cups.The store is open 5 days a week Tuesday to Saturday all year long.Moshin's questions to you are:How much does he need to sell just to break even in both sales and units?How much does the store needs to sell each day if he wants to make a $50,000 profit next year?He is not sure he can increase his sales volume any more than this year. What price cup would he have to charge to make$50,000 profit next year?

A break-even in the sales value is the required amount of sales worth which are required to be…

How much does he need to sell just to break even in both sales and units? How much does the store needs to sell each day if he wants to make a $50,000 profit next year? He is not sure he can increase his sales volume any more than this year. What price cup would he have to charge to make $50,000 profit next year?

How much does he need to sell just to break even in both sales and units? How much does the store needs to sell each day if he wants to make a $50,000 profit next year? He is not sure he can increase his sales volume any more than this year. What price cup would he have to charge to make $50,000 profit next year?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 26P

See similar textbooks

Related questions

Q: You are shopping for a car and read the following advertisement in the newspaper: "Own a new…

A: Solution:-When an equal payment is made each period at end of period, it is known as ordinary…

Q: (a) She wants her first payout to have the same purchasing power as does $17,000 today. How big…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: You are thinking about buying a house.You find one you like that costs $200,000. You learn that your…

A: Opportunity cost is the cost that has been sacrificed by choosing an alternative among two by the…

Q: Your friend in mechanical engineering has invented a money machine. The main drawback of the machine…

A: While calculating net present value of the project where the project is expected to generate future…

Q: ou manage an ice cream business and want to buy a new store from which to operate. The sales price…

A: The requirement is to compute the NPV of the project and make recommendations on whether the family…

Q: then is this an acceptable investment? Show why.

A: Net Present Value (NPV) is a method which is used to calculate the profitability of an proposed…

Q: An investor is purchasing an industrial building.He needs to replace the roof today at a cost of…

A: Future value is the value of an investment or asset at a specified date in the future, based on the…

Q: Today, your dream car costs $50,100. You feel that the price of the car will increase at an annual…

A: We need to find future value of the car if grown at 2.1%

Q: You decide you need to generate 4,500 a month from your retirement savings to live comfortably. You…

A: Monthly retirement income=$4500Retirement life=30 yearsInheritance fund-$2000000Interest rate=8%

Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…

A: Given information: Future value amount is $775,000 Interest rate is 8% Number of years is 30

Q: Gary kiraly wants to buy a new Italian sports car in three years. The vehicle is expected to cost…

A: using excel PV function

Q: A woman desires to have $400,000 in a savings account when she retires in 20 years. Because of the…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: Bob is considering buying a small shop on Vancouver Island. He has found a small shop with a…

A: The total resources allocated to a new venture investment under progress is known as the initial…

Q: The Borstal Company has to choose between two machines that do the same job but have different…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Find (a) the future value of the business if it is to be continued and (b) what price should he sell…

A: a) Calculation of future value of business if it is to be continued Estimated Value…

Q: The Jones want to save $95,000.00 in 5 years for a down payment on a house. If they make monthly…

A: A down payment is often paid in cash in the early stages of a purchase of an expensive service or…

Q: Victor hernandez Considers a Career Change Victor is somewhat satisfied with his sales career and…

A: Future value is value after compounded growth of income.

Q: 1. If Ahmad can buy a car today for $ 5000, the car will worth $ 10,000 in extra income to Ahmad…

A: Since money is the lifeblood of a company, it must invest as much as it can if it wants to stay in…

Q: (Question #2) Dr. Pickens wants to buy a burger chain. He currently has $35,000. He needs to have…

Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…

A: Time = t = 30 years Future value = fv = $775,000 Interest rate = r = 8%

Q: Suppose you have $1,500,000 when you retire and want to withdraw an equal amount each year for the…

A: Data given: Amount = $1,500,000 n=30 years Required: i) How much can you withdraw each year if you…

Q: Lucid was considering purchasing a small business. If it invests the amount of $500,000 for the…

A: Given information,Purchase amount: Annual gross return: To calculate,Annual cost under different…

Question

Mohsin owns a store downtown Kingston selling the World's Greats Coffee Cup. You are his accountant and below is his
income statement for the past year.
World Greatest Coffee Cup Company
Kingston Store
For the Year Ended June 30, 2023
Sales
S
339,546
Advertising
15,985
Computers and IT
2,565
Hydro and Utilities
3,152
Insurance
12,985
Mariager Wages
45.985
Merchandise
225,950
purchase
Misc.
9,856
Rent
24,000
Direct wages
35,956
Total Expenses
376,434
Profit (Loss)
(36,888)
He wants to understand what he needs to do to improve the business to start making profit. Through conversation you
also learn the following information about the business.
.The volume was 13,600 coffee cups.
The store is open 5 days a week Tuesday to Saturday all year long.
Moshin's questions to you are:
How much does he need to sell just to break even in both sales and units?
How much does the store needs to sell each day if he wants to make a $50,000 profit next year?
He is not sure he can increase his sales volume any more than this year. What price cup would he have to charge to make
$50,000 profit next year?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Computation of break-even in sales and units

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Can you show me what the general ledgers would look like. I have them done just want to double check my work
In this activity, you are going to record a comprehensive transactions involving merchandising concern. Prepare the journal entries, T-accounts and trial balance of a merchandising concern. Cielo Bonita is engaged in buying and selling of novelty items. The following transactions have transpired for the month of Sept. 2020. Sept. 1 – She invested P100,500 cash and an old office equipment presently valued at P33,200 which she bought 2 years ago for P50,000. Sept. 2- Purchased MDSE from ABC Enterprise for P20,000. Terms: n/30, FOB destination. ABC paid P1,500 for the freight cost. Sept. 3- Sold MDSE for cash amounted to P10,600. Sept. 6- Purchased MDSE from Ali Commercial for P26,500. Terms: 50% down payment, balance 2/10, n/30. Sept. 7 – Sold MDSE to Jay Cesar for P12,500. Terms: 2/10, n/30, FOB Shipping point. Sept. 8 – Purchased from COVID Furniture a display counted for P6,000. Terms : 50% down payment, balance 1/10, n/30.92 Sept. 9 – Sold MDSE to Giles Anthony for P14,000. Terms:…
Fred has a business of selling computers taking orders online and customers click and collect during Covid19 in Sydney. Most customers pay at the time of delivery. His sales for the year ending 30th June 2021 were $3,500,000 During the year ended 30th June 2021 purchases of computers were $1,500,000 and at 30th June 2021 stock on hand was $400,000. Lenny's closing stock for the year ended 30th June 2021 was $300,000. Explain the rules applicable to trading stock and calculate the income he should declare in relation to the facts as stated above for the year ending 30th June 2021 A- U S x x 田 I
Need complete and correct answer for all parts clearly with all workings and steps in text form please show calculation, formula and explanation clearly for all steps for all parts answer in text form attempt if you can answer all otherwise just skip
Swift Company is a merchandising business organized in 2020. It is located in J. Hernandez Avenue, Naga City, with telephone number 1989-1213, and website tswiftmerchandising.com You were asked by the owner, Ms. T. Swift, to create a simple computerized accounting system for her business which they will use for records keeping, preparation of financial statements, and as substantiation for regulatory requirements. The December 31, 2021 post-closing trial balance for the Swift Company follows: Swift Company Post-Closing Trial Balance December 31, 2021 110 Cash ₱ 240,000 120 Accounts Receivable 210,000 130 Merchandise Inventory 730,000 140 Prepaid Rent 90,000 150 Office Supplies 160,000 160 Office Equipment 1,000,000 165 Accumulated Depreciation ₱…
Prepare the journal entries to record the transactions assume JE#, accounts, and dates.
Tom loves cooking and after attending culinary school, he decided to start his owneatery in downtown Vancouver in May. Since he did not receive formal business, hehas asked you to help him prepare monthly financial statements. He was able to collectall business receipt and financial records. The following are transactions for the monthof January 2022, the first month of operations.Jan 1 Tom invested his saving of $350,000 into business bank account at TD Bank andhe also borrowed &150,000 as 24 months bank loan.Jan 1 Signed lease contract and secured the locationJan 1 Purchased a one-year insurance policy for $24,000 in cash.Jan 2 Tom purchased kitchen equipment for $150,000 and $1000 kitchen suppliesincluding napkins and clean supplies in cashJan 1 he hired a soul chef and one receptionist. In contract, he will pay the soul chef$5,000 per month and receptionist $3,000 per monthJan 2 Tom purchased $100,000 furniture in cashJan 3 Tom hired a renovation company to do lease…
Ryan Egan and Jack Moody are both cash register clerks for Organic Markets. Lee Sorrell is the store manager for Organic Markets. The following is an excerpt of a conversation between Ryan and Jack: Ryan: Jack, how long have you been working for Organic Markets? Jack: Almost five years this November. You just started two weeks ago … right? Ryan: Yes. Do you mind if I ask you a question? Jack: No, go ahead. Ryan: What I want to know is, have they always had this rule that if your cash register is short at the end of the day, you have to make up the shortage out of your own pocket? Jack: Yes, as long as I’ve been working here. Ryan: Well, it’s the pits. Last week I had to pay in almost $40. Jack: It’s not that big a deal. I just make sure that I’m not short at the end of the day. Ryan: How do you do that? Jack: I just shortchange a few customers early in the day. There are a few jerks that deserve it anyway. Most of the time, their attention is elsewhere and they don’t think to check…
Please help me
Please help me
Subject - account Please help me. Thankyou.
Katie Wright’s banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application for a $6,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2020: