Mini-Case 12-6: Crazy Harry's

question 8

Essay

Mini-Case 12-6: Crazy Harry's
The following is a pro forma income statement for Crazy Harry's.
Crazy Harry's
Pro Forma Income Statement
Sales $96,000
Cost of Goods Sold 46,240
Gross Profit $49,760
Fixed Expenses
Rent $2,400
Insurance 3,000
Salaries 16,500
Taxes 1,100
Miscellaneous Fixed Expenses 900
Total Fixed Expenses $23,900
Variable Expenses
Wages $11,200
Advertising 5,700
Benefits 2,800
Other Variable Expenses 1,120
Total Variable Expenses $20,080
Net Profit $5,040
-Calculate Harry's break-even point.

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Definitions:

Prejudice

Preconceived opinions or judgments about individuals or groups without complete knowledge or experience, often negative and based on stereotypes.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Explicit Attitudes

Attitudes that an individual is consciously aware of and can report.

Consciously

Refers to actions or processes that are done with awareness, being fully perceptible by the mind.