Last visit was: 18 Jun 2024, 01:38 It is currently 18 Jun 2024, 01:38

Close

GRE Prep Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GRE score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Verbal Expert
Joined: 18 Apr 2015
Posts: 28950
Own Kudos [?]: 33721 [4]
Given Kudos: 25365
Send PM
Intern
Intern
Joined: 14 Oct 2019
Posts: 46
Own Kudos [?]: 48 [1]
Given Kudos: 988
Send PM
Verbal Expert
Joined: 18 Apr 2015
Posts: 28950
Own Kudos [?]: 33721 [0]
Given Kudos: 25365
Send PM
User avatar
Intern
Intern
Joined: 12 May 2024
Posts: 14
Own Kudos [?]: 9 [1]
Given Kudos: 0
Send PM
Sally is starting a crafting business. According to her business p [#permalink]
1
There is a simple way to solve this. Let’s start by figuring out the total fixed costs Sally will incur in the 2 years (24 months).

Total fixed costs = $250,000 + 24(4500)
Therefore, Sally must make $358,000 in 24 months to break even.

We’re told that the profit of each store is 30% (70% of revenue is spent on costs).

The weekly revenue per store is $1000, so the monthly revenue is $4000. 30% profit is $1200. Each store will make $28,800 in 24 months.

So, 358,000 / 28800 = ~12.5

Therefore Sally needs a minimum of 13 stores because 12 stores would not generate enough profit for her to break even.
Prep Club for GRE Bot
[#permalink]
Moderators:
Moderator
1088 posts
GRE Instructor
218 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne