1. The Shopping Bag is a thrift store that sells used clothing. Assume that variable costs associated with selling each item…
1. The Shopping Bag is a thrift store that sells used clothing. Assume that variable costs associated with selling each item on average is $0.50. Average selling price of each item is $2.50. The store has the following expenses incurred on a monthly basis: Labor/payroll: $900 Telephone/Internet: $50 Office supplies: $25 Other supplies: $25 Assume that there are no taxes; Show all your calculations for all questions: a) How many clothing items should the store sell per month to breakeven? a) How much revenue per month should it make to breakeven? b) How much revenue per month should it make to create a profit of $2000?
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