National investor group is opening an office in Portland. Fixed monthly costs are office rent (8500, depreciation on office furniture ($2000), utilities ($2100), special telephone lines ($1100), connection with brokerage service ($2800), and the salary of a financial planner ($4500). Varible cost include payments to financial planner (8% of revenue), advertising (13% of revenue), supplies and postage 3% of revenue and usuage fees for telephone lines 6% of revenue.
Use the Contribution margin ratio CVP formula to compute National breakeven in dollars. If the average trade leads to $1000 in revenue for National how many trades must be made to break even?