Question1:- PC planet has just opened its doors. The new retail store sells refurbished computers at a significant from market prices. The variable cost PC for computers are planet $100 to purchase and require (10 hours of labor at $15 per hours) and wages for sales personnel $50 per computer. The newly refurbished computers are resold to customers for $500. Rent (fixed cost) on the retail cost the company $4000 per month. 1- How many computers does PC planet have to sell each month to break even? 2- If PC planet wants to earn $5000 per month after all expenses, how many computers does the company need to sell? 3- PC planet can purchåse already refurbished computers for $200. This would mean it need additional labor. $50 per computer. What would PC plants new breakeven point be if it decided to purchase the computers already refurbished?

Question1:- PC planet has just opened its doors. The new retail store sells refurbished computers at a significant from market prices. The variable cost PC for computers are planet $100 to purchase and require (10 hours of labor at $15 per hours) and wages for sales personnel $50 per computer. The newly refurbished computers are resold to customers for $500. Rent (fixed cost) on the retail cost the company $4000 per month. 1- How many computers does PC planet have to sell each month to break even? 2- If PC planet wants to earn $5000 per month after all expenses, how many computers does the company need to sell? 3- PC planet can purchåse already refurbished computers for $200. This would mean it need additional labor. $50 per computer. What would PC plants new breakeven point be if it decided to purchase the computers already refurbished?

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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