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 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600.Begin by selecting the formula to compute the required sales in units to earn a target profit.Net sales revenueVariable costsFixed costsTarget profitRearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $12,600.Mortgage must maketrades to earn a monthly operating income of $12,600.

1.) Calculation of total fixed cost : Office rent 8,900 Depreciation on office furniture 1,800…

Answered: Requirement 2. Use the equation…

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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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 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600.
Begin by selecting the formula to compute the required sales in units to earn a target profit.
Net sales revenue
Variable costs
Fixed costs
Target profit
Rearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $12,600.
Mortgage must make
trades to earn a monthly operating income of $12,600.

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