If the company wants to earn a profit of $35,000 instead of breaking even, what is the amount of sales the company must achieve? Given information:  Fixed Expenses Rent = $ 24,000  Salaries = $ 40,000  Depreciation = $ 13,000 Variable Expenses  Cost of Goods Sold = 28% of sales Supplies = 17% of sales Sales Commissions = 10% of sales

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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If the company wants to earn a profit of $35,000 instead of breaking even, what is the amount of sales the company must achieve?

Given information: 

Fixed Expenses

Rent = $ 24,000 

Salaries = $ 40,000 

Depreciation = $ 13,000

Variable Expenses 

Cost of Goods Sold = 28% of sales

Supplies = 17% of sales

Sales Commissions = 10% of sales

 

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