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    Monthly sales to make a profit of $2,000

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    Wanda wants to open a health food store. She pays rent of $1,500 per month, utilities of $500, insurance of $100 per month, and payroll of $1,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $2,000 a month for herself.

    a. What is Wanda's contribution margin?
    b. How much does she need in monthly sales to break even?
    c. How much does she need in monthly sales to make a profit of $2,000?

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    Solution Preview

    Wanda wants to open a health food store. She pays rent of $1,500 per month, utilities of $500, insurance of $100 per month, and payroll of $1,250. She estimates ...

    Solution Summary

    Response provides steps to compute the monthly sales to make a profit of $2,000.

    $2.19

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