Terri hall inc this company a fashion store that sells sheer elegences. this owner ms terri wants to adapt the cost volumme profit -cvp terri hall inc prepare anaysis
Sale-price per stocking 2.00
Varabl expenes per sale of stocking 80 cents
contribut margin= 1.20 cents
Expeneses per yr=12,000
equpiment deperication=3,000
sale=30,000
Admin=15,000 total= 60,000
Qiestion1- how many pair of stocking must be sold to breakeven
Question 2. Prepare a cvp from pair up to 70,000 pair of stocking sold each yr and what is the breakeven point
Question 3 how many pair of stocking must be sold to earn 9,000 target profit 4 the year
Question 4. terri hall wants to hire i full time staff and 1 partime staff. by hiring fulltime and partime staff at salary pf 8,000 ys; she think it will bring 20;000 in sale each yr should ms terri hall hire staff or not and why teri hall inc data Sale=125.000
Varable expe =50.000
contribute margin = 75,000
fix expenes = 60;000
noi net operation income = 15.000
Question 4 what is the store degree of operation levarage; this owner think with this plan; sale will increase 20 percent
Question 5. what will be the percent of operation income