How monthly profit increase as revenue increases, Accounting Basics

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How monthly profit increase as revenue increases

Gina Matheson owns and operates a successful florist shop in Bloomington, Indiana. Gina estimates that her variable costs are $0.25 per sales dollar (i.e. variable costs represent 25% of revenue) and that her fixed costs amount to $6,000 per month.

a. How does Gina's monthly profit increase as revenue increases? (Note: given that absence of unit-level data, you will need to express Gina's monthly profit in terms of revenue).

b. How much revenue does Gina need to generate each month to break even?

c. How much profit would Gina earn if her revenues were $10,000 per month?

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Accounting Basics: How monthly profit increase as revenue increases

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Recent Questions Asked Accounting Basics

Q : Reported in a consolidated balance sheet

Q : What portion of the loan should be eliminated

Q : Income statement and subsidiary

Q : Equivalent units of the weighted average method

Q : How monthly profit increase as revenue increases

Q : Calculate that revenue required to earn an after-tax profit

Q : Write down the expression for annual after-tax profit

Q : At what amount should the new truck be recorded

Q : What amount should be reported as goodwill

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: How monthly profit increase as revenue increases

Reference No:- TGS079294

Recent Questions Asked Accounting Basics

Q : Reported in a consolidated balance sheet

Q : What portion of the loan should be eliminated

Q : Income statement and subsidiary

Q : Equivalent units of the weighted average method

Q : How monthly profit increase as revenue increases

Q : Calculate that revenue required to earn an after-tax profit

Q : Write down the expression for annual after-tax profit

Q : At what amount should the new truck be recorded

Q : What amount should be reported as goodwill

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