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Tom is pleased to know where the breakeven point is, but his business objective is not breaking even; he's in this deal to make money - hopefully a...
10. Tom is pleased to know where the breakeven point is, but his
business objective is not breaking even; he's in this deal to make money -
hopefully a lot of money. He has invested his personal savings, as well as
other family members' money, and he plans to be spending quite a bit of his
time monitoring the operations. If the business is sufficiently profitable, he
may open another store. He's looking to take out $7,500 per month as a salary
for himself. Although the store manager is appropriately focused on individual
bottle sales, Tom thinks more in terms of cases, since he has the primary
supplier contacts, and that's the way they communicate. So, he recalculates.
What is the weekly sales quantity (in cases) that will be necessary in order
for Tom
to pay himself a salary and reach a point where he can start to
make a profit?
________ cases