Reference no: EM13859219

Question 1: Using the steps in Clement Ojugo's article, "Knowing your break-even point critical to good decision making," solve the following:

You are opening a new retail shop and estimated fixed costs for the vacant facility are $7,500 per month. Estimate that items will sell for approximately $30 each, the combined variable cost of product and labor are estimated at $10 with a selling price of $30. You feel certain that the market for this new retail shop is 100 transactions per day. Determine if you should open the retail shop in this vacant space. Include the break-even transactions, CM%, and the break-even dollar amount. Explain your answer (include rationale if your answer is yes or no).

Question 2: Kathryn Watson, Sandra Hogarth-Scott, and Nicholas Wilson describe why some commonalities among entrepreneurs in their article, "Small business start-ups: success factors and support implications." Identify these and determine how each affect the entrepreneur becoming successful.

Question 3: Using the six inventory drivers as described by Dennis Lord in his article, "Inventory: The necessary evil?", outline each of these drivers describing what each is and what the small business owner should do to ensure proper inventory.

Question 4: In the article, "The real cost of carrying inventory," Dennis Lord discusses the issues of too much inventory. According to the author, how should the small business owner calculate its inventory? What is the most efficient way to figure out how much inventory is too much?