Mortgage Investor Group opening an office in Portland, OregonFixed monthly costs are office rent ($8,900) , depreciation on

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Mortgage Investor Group opening an office in Portland, OregonFixed monthly costs are office rent ($8,900) , depreciation on office furniture (1, 800), utilities  ($2,200), special telephone lines ($1,000), a connection with an online brokerage service ($2,700) , and the salary of a financial planner ($4,400). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue) and usage fees for the telephone lines and computerized brokerage service (6% of revenue).

 

 

Requirement 4. Suppose that the average revenue Mortgage earns  increases to $1.500 per trade. The new breakeven point trades. How does the affect the break even point?

Unber new assumptions, Mortage must make ____________ trades to breakeven  

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