Retail merchandiser that sells cards-supplies and magazines

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Reference no: EM131223516

Misc Things, Inc. is currently open from 8am to 8pm six days per week. The store is a retail merchandiser that sells cards, supplies, magazines, and a few books. The following is the most recent annual Income Statement received from the company’s external accountant:

Sales $464,900

Cost of sales $162,700

Gross Margin $302,200

Expenses:

Salaries $109,000

Rent $48,000

Utilities $12,500

Insurance $9,500

Misc $5,500 $184,500

Profit $117,700

As an experiment, Katie the manager kept the store open for six hours on a Sunday. Resulting sales were $840 and a part time employment payroll costs were $135. From the above income statement and a few calculations and percentages, Katie came up with about $591 as the daily cost of operations without sunday hours. She then concluded that about $910 in sales revenue would be necessary to justify opening on Sundays.

1) Document the calculations Katie made to determine her figures of $591 and $910.

Reference no: EM131223516

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