Comments on: Wanda wants to open a health food store. She will pay rent 1500 per month, utilities 500, insurance 100 and pa http://www.health--is--fun.com/healthy-living/wanda-wants-to-open-a-health-food-store-she-will-pay-rent-1500-per-month-utilities-500-insurance-100-and-pa/166/ Some Ideas To Help Stay Fit Tue, 22 May 2012 03:02:04 +0000 http://wordpress.org/?v=2.6.5 By: Gerald S http://www.health--is--fun.com/healthy-living/wanda-wants-to-open-a-health-food-store-she-will-pay-rent-1500-per-month-utilities-500-insurance-100-and-pa/166/#comment-265 Gerald S Wed, 06 Aug 2008 17:43:58 +0000 http://www.health--is--fun.com/healthy-living/wanda-wants-to-open-a-health-food-store-she-will-pay-rent-1500-per-month-utilities-500-insurance-100-and-pa/166/#comment-265 Sounds like a homework question to me. Sounds like a homework question to me.

]]> By: kate http://www.health--is--fun.com/healthy-living/wanda-wants-to-open-a-health-food-store-she-will-pay-rent-1500-per-month-utilities-500-insurance-100-and-pa/166/#comment-264 kate Sun, 03 Aug 2008 20:42:12 +0000 http://www.health--is--fun.com/healthy-living/wanda-wants-to-open-a-health-food-store-she-will-pay-rent-1500-per-month-utilities-500-insurance-100-and-pa/166/#comment-264 First , the goods as 65% of sales is a bogus assumption ( could easily be that goods exceed sales in the early days and when successful , are less than 25 % soooooo Bogus Assumption / No valid economic basis for this number ) At some point during operation however , 65% may be legit when doing a current analysis . . . So , at the point in business when product is running 65 % of sales . . . How much to break even ? If product is 65% , then the other costs are 35% Add up the other costs . . . ( $3350 ) Break even means 35 % of sales = $3350 Product costs + operating costs = break even .35 ( sales ) = 3350 sales = 3350 / .35 Sales would have to be about $9571 to break even . Revenue necessary for profit ? Add the $2K to the break even amount . First , the goods as 65% of sales is a bogus assumption ( could easily be that goods exceed sales in the early days and when successful , are less than 25 % soooooo Bogus Assumption / No valid economic basis for this number )
At some point during operation however , 65% may be legit when doing a current analysis . . .
So , at the point in business when product is running 65 % of sales . . .

How much to break even ?

If product is 65% , then the other costs are 35%
Add up the other costs . . . ( $3350 )
Break even means 35 % of sales = $3350
Product costs + operating costs = break even
.35 ( sales ) = 3350
sales = 3350 / .35
Sales would have to be about $9571 to break even .

Revenue necessary for profit ?
Add the $2K to the break even amount .

]]>