Construct peta profit and loss statement


Please assist with the given questions.

Pet Energy Therapy Association (PETA) treats peoples' pets, and has the following cost structure:

Charge per therapy session              $150
Variable cost per therapy session       $ 50
Fixed costs                                 $200,000

They expect to perform 2,000 session each year (8/day, 5 days/week, 50 weeks/year).

A. Construct PETA's profit and loss statement.

B. How many sessions must PETA's perform to breakeven?

C. To earn $100,000 in profit, how many sessions must they provide this year?

D. If there is one fulltime employee, paid $40/hour, who spends an hour on each session, what work would be needed to earn the $100,000?

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Finance Basics: Construct peta profit and loss statement
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