Use a excel spreadsheet for all your answers.
Uncle Pete has opened a hardware store. His rent is $5,000 per month, general expenses are $300 per month and staff costs are $2,100 per month. He expects that on every dollar of sales, he can make a gross profit of 23 cents and that monthly utility costs will be $100 plus 1% of the sales.
a) What are his fixed costs?
b) How much does he need to sell in order to break even (assuming that there are no other costs and expenses)?
Please solve this using excel formula preferably, or even explain how to find the answer in excel.