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Bubbas bait shop sells spinner top water diving and tube

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Bubba's Bait Shop sells spinner, top water, diving and tube baits. Bubba estimates that his variable costs are $0.20 per sales dollar and fixed costs total $4,500 per month.

a. How much revenue does Bubba need to break even each month?

b. How much revenue does Bubba need to generate in order to realize a profit of $3,000 each month?

c. If Bubba expects his vendors to increase the price of baits by 40%, what will be his break-even revenue per month?

Reference no: EM13612757

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