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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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