Tom is pleased to know where the breakeven point is, but his business objective is not breaking even; he’s in this deal to make money – hopefully a…

10. Tom is pleased to know where the breakeven point is, but his

business objective is not breaking even; he’s in this deal to make money –

hopefully a lot of money. He has invested his personal savings, as well as

other family members’ money, and he plans to be spending quite a bit of his

time monitoring the operations. If the business is sufficiently profitable, he

may open another store. He’s looking to take out $7,500 per month as a salary

for himself. Although the store manager is appropriately focused on individual

bottle sales, Tom thinks more in terms of cases, since he has the primary

supplier contacts, and that’s the way they communicate. So, he recalculates.

What is the weekly sales quantity (in cases) that will be necessary in order

for Tom

to pay himself a salary and reach a point where he can start to

make a profit?

________ cases

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