1)      Fixed Cost

 Office rent                                              $ 8,200

Depreciation on office furniture                   $ 1,500

Utilities                                                    $2,300

Telephone lines                                        $ 1,300

Online brokerage services                          $ 2,900

Salary for financial planner                         $ 11,800

                                                               $ 28000

Variable Costs

Financial planner                            (9% * 800) $72

Advertising                                    (12% * 800) $96

Supplies and Postage                     (4% * 800) $ 32

Computerized usage brokerage fee (5% * 800) $ 40

                                                                        $ 240

Breakeven Sales Volume = Fixed Costs ÷ (Sales Revenue – Variable Costs)

Breakeven Sales Volume = 28000 ÷ (800 – 240)

Breakeven Sales Volume = 28000÷ 560 = 50 units.

2)                                                    Total                         

Sales                                              $39,440        

Less variable expenses                     ($240)                     

Contribution margin                          $ 39,200                   

Less fixed expenses                         ($28,000)

Net operating income                         $11,200                   

4) Sales revenue = $ 900

Breakeven Sales Volume = Fixed Costs ÷ (Sales Revenue – Variable Costs)

Breakeven Sales Volume = 28000÷ (900 – 240)

Breakeven Sales Volume = 28000÷ 660 = 42.42 units approximately 42 units

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