Nielsen’s Fine Drapery Store
Please do this completion in achieve.
You are the possessor of a open retail-drapery accumulation. Below is the pay proposition for latest year which is not forebodeed to veer at all during the upcoming fiscal year. You bear one ample period director, two three locality period coadjutor directors and 3 multiply period clerks. You bear had the director and coadjutor directors for the late five years. Five years ago sales were simply 350,000 dollars. As sales bear growthd you bear assumed the multiply period clerks. You prepare adding past clerks as sales growth in the advenient. You pay you security card vendor 1 percent of sales. Bad debit charge and shrinkage are besides estimated as a percentage of sales. The Mall beggarly area cancelment must be compensated disregarding of how numerous sales you find
1. Please investigate the pretax breakeven purpose in sales dollars from the formula in the online disquisition on breakeven dissection. Use the formula for breakeven sales dollars. Do not use the formula for breakeven in units. As multiply of this dissection register each charge separate and identify whether it is a agricultural or a shifting charge. (20 purposes)
2. What happens to your breakeven purpose if your first supplier of drapery raises charges 5%? You buy 45% of your drapery from this union. (10 purposes)
3. Your director has current an tender of avocation from a rival. She would find 25% past than you are paying her now. If you competition this tender, what is the collision upon your breakeven purpose (what gain the new breakeven purpose be)? (10 purposes)
Please demonstration the calculations delay your answers.
Data for dissection.
First step: Determine which charge separates are agricultural and which are shifting. I do not forebode you to find the similar assumptions I would find. You are graded on the contact of the breakeven formula to the postulates as you bear analyzed it.
Second Step: Investigate the breakeven sales using the formula in the online disquisition.
Third Step: Do a “what if” dissection by changing the inputs (in completion 2 and 3) and recalculating the breakeven sales.
Managers’s Salaries & Benefits 25,000
Asst. Managers’ Wages 35,000
Clerical Wages 29,000
Owner’s Salary 55,000
Rent (4% of sensual fruits) 13,000
Mall Beggarly Area Cancelment 25,000
Phone Bill 5,000
Property Insurance 7,000
Property Taxes 5,000
Office Supplies 2,000
Equipment Expenses 5,000
Bad Debit Charge 15,000
Credit Card Charge 6.500
Wholesale Drapery Purchases 380,000
Total Expenses 612,000
Net Operating Pay 38,000
This charge of 38000 is multiply of the scrutiny, not a multiply of my explicit budget.