Short Answer
Use the graphical approach to CVP analysis to solve the following problem.
Jordan is developing a business plan for a residential building inspection service he wants to start up. Rent and utilities for an office would cost $1,000 per month. The fixed costs for a vehicle would be $450 per month. He estimates that the variable office costs (word processing and supplies) will be $50 per inspection and variable vehicle costs will be $25 per inspection. Jordan would also spend $200 per month to lease a computer, and $350 per month for advertising.
a) If he charges $275 per inspection, how many inspections per month are required before he can "pay himself?"
b) How many inspections per month are required for Jordan to be able to draw a salary of $4,000 per month?
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Use the Texas Instruments BAII plus break-even
Q3: A manufacturing company is considering producing a
Q4: Kuldip's factory manufactures toys that sell for
Q5: Determine the monthly profit (loss) if it
Q6: Use the graphical approach to CVP analysis
Q7: The current annual budget for Armstrong Ltd.
Q8: Use the graphical approach to CVP analysis
Q9: A small business calculates that its monthly
Q10: Use the graphical approach to CVP analysis
Q11: Weiner's Hot Dog Stand sells hot dogs