Unformatted text preview: families must be served to clear the break-even point? (b) If the banker believes Greg will only serve 100 families during the first year in business, how much will the business lose during its first year of operation? (c) If Greg believes his profits will be at least $100,000 during the first year, how much is he anticipating for total revenue? (d) The banker has suggested that Greg can reduce his fixed costs by $150,000 if he will not buy any vehicles. Greg can instead rent vehicles as needed. The variable cost of renting is $700 per family served. Will this suggestion help Greg reach the break-even point sooner?...
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- Spring '11
- Accounting, annual fixed cost, Greg Morrison, suggestion help Greg