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 Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 7P: Upton Computers makes bulk purchases of small computers, stocks them in conveniently located...

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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?

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