Project #31161 - finance homework

Low overhead rent- Commission of 30% of sales High overhead rent 1,000 fixed rental cost for the  

entire weekend food and beverage costs are 20% of total sales and you pay the employee 400.00

to run a cart for the weekend

Find the breakeven sales point for low overhead and high overhead.

 

Calculate degree of operating leverage

Your estimate that your sales for the weekend will either be average or great Average sales $2800.00

Great 50% higher than average or 4200.00

What is your degree of leverage a average sales of $2800.00 for both low and high scenario

 

Calculate profits and increast in profitability

Calculate the profit potential for an average and gret weekend for low and high overhead scenrio

How much did profits increase by relative to an increase in sales for both scenarios.

How does this camparet with answers you derived in question 2.

 

Please post full calculations and excel formulas.

 

Subject Mathematics
Due By (Pacific Time) 05/17/2014 09:30 pm
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