Gloria meehan is considering opening a window tinting, Ask an Expert

Accounting

Gloria Meehan is considering opening a window tinting business. She estimates that the following costs will incurred during the first year of operations: Rent, $3,000; Depreciation on equipment, $5,000; Wages, $3,500 (based on 500 windows tinted in the previous year); tinting, $3 per square foot. Each window tinted takes 4 square feet of tint. Gloria anticipates that she will tint each window for a retail price of $35 each.

Instruction:

A. Determine variable costs per unit and total fixed cost.

B. Determine the break-even point in number of windows to be tinted.

C. How many windows need to be tinted to earn income of $14,000?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91585698

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