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Wanda wants to open a health-food store. Her monthly expenses are rent $3,500, utilities of $1,000, insurance of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself.
Question 1: What is Wanda's contribution margin?
Question 2: How much does she need in monthly sales to break even?
Question 3: How much does she need in monthly sales to make a profit of $4,000?
Question 4: Construct a break-even chart for Wanda's health-food store
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