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28 Sep 2019
Jimmy Gagnee sells stolen jukeboxes on the black market. Theproceeds from each sale average $800. Jimmy purchases each jukeboxfrom a street named the "Sticky Fingers" for $285. He incurs $15 invariable cost to deliver each unit. His fixed cost is $10,000.
Answer the following:
a. How many jukeboxes must Jimmy sell to breakeven?
b. Where is Jimmy's breakeven in terms of sales revenue?
c. How many units must Jimmy sell to clear a pretax profit of$20,000?
d. What is Jimmy's operating leverage at this activity level(assume $20,000 pretax profit). If his sales increase or decreaseby 10%, how much will his profits change?
Please help me with this question.
Jimmy Gagnee sells stolen jukeboxes on the black market. Theproceeds from each sale average $800. Jimmy purchases each jukeboxfrom a street named the "Sticky Fingers" for $285. He incurs $15 invariable cost to deliver each unit. His fixed cost is $10,000.
Answer the following:
a. How many jukeboxes must Jimmy sell to breakeven?
b. Where is Jimmy's breakeven in terms of sales revenue?
c. How many units must Jimmy sell to clear a pretax profit of$20,000?
d. What is Jimmy's operating leverage at this activity level(assume $20,000 pretax profit). If his sales increase or decreaseby 10%, how much will his profits change?
Please help me with this question.
Elin HesselLv2
28 Sep 2019