# Break-Even Analysis

Â Â
Nielsenâ€™s Fine Clothing Store
Please do this problem in excel.
You are the owner of a general retail-clothing store. Below is the income statement for last year which is not expected to change at all during the upcoming fiscal year. You have one full time manager, two three quarter time assistant managers and 3 part time clerks. You have had the manager and assistant managers for the past five years. Five years ago sales were only 350,000 dollars. As sales have increased you have added the part time clerks. You anticipate adding more clerks as sales increase in the future. You pay you credit card vendor 1 percent of sales. Bad debt expense and shrinkage are also estimated as a percentage of sales. The Mall common area payment must be paid regardless of how many sales you make
1. Please calculate the pretax breakeven point in sales dollars from the formula in the online lecture on breakeven analysis. Use the formula for breakeven sales dollars. Do not use the formula for breakeven in units. Â As part of this analysis list each expense item and identify whether it is a fixed or a variable expense. (20 points)
2. What happens to your breakeven point if your primary supplier of clothing raises prices 5%? You buy 45% of your clothing from this company. (10 points)
3. Your manager has received an offer of employment from a competitor. She would make 25% more than you are paying her now. If you match this offer, what is the impact upon your breakeven point (what will the new breakeven point be)? (10 points)
Data for analysis.
First step: Determine which expense items are fixed and which are variable. I do not expect you to make the same assumptions I would make. You are graded on the application of the breakeven formula to the data as you have analyzed it.Â
Second Step: Calculate the breakeven sales using the formula in the online lecture.
Third Step: Do a â€œwhat ifâ€ analysis by changing the inputs (in problem 2 and 3) and recalculating the breakeven sales.
Revenues \$650,000
Expenses:Â
Managersâ€™s Salaries & Benefits 25,000
Asst. Managersâ€™ Wages 35,000
Clerical Wages 29,000
Ownerâ€™s Salary 55,000
Rent (4% of gross revenue) 13,000
Mall Common Area Payment 25,000
Phone Bill 5,000
Property Insurance 7,000
Property Taxes 5,000
Office Supplies 2,000
Postage 500
Equipment Expenses 5,000
Shrinkage 4,000
Bad Debt Expense 15,000
Credit Card Expense 6.500
Wholesale Clothing Purchases 380,000
—————
Total Expenses Â 612,000
Net Operating Income 38,000Â
This price of 38000 is part of the question, not a part of my actual budget.

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

### Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

### Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: