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MSM Company sells clothing for young adults. The firm has normal monthly fixed costs of...

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Finance

MSM Company sells clothing for young adults. The firm has normal monthly fixed costs of $90,000 ($38,000 of this amount is fixed salaries). The firms variable cost ratio averages 60%. The firm operates 3 stores in the mid Atlantic region.

1. What is the monthly level of sales dollars needed to breakeven? _____________

2. What is the monthly level of sales dollars needed to earn an operating profit of $10,000 monthly?____________

3. What is the monthly level of sales dollars needed to earn an operating profit of 8% of sales monthly?___________

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