Misc Things, Inc. is currently open from 8am to 8pm six days per week. The store is a retail merchandiser that sells cards, supplies, magazines, and a few books. The following is the most recent annual Income Statement received from the company’s external accountant:
Sales $464,900
Cost of sales $162,700
Gross Margin $302,200
Expenses:
Salaries $109,000
Rent $48,000
Utilities $12,500
Insurance $9,500
Misc $5,500 $184,500
Profit $117,700
As an experiment, Katie the manager kept the store open for six hours on a Sunday. Resulting sales were $840 and a part time employment payroll costs were $135. From the above income statement and a few calculations and percentages, Katie came up with about $591 as the daily cost of operations without sunday hours. She then concluded that about $910 in sales revenue would be necessary to justify opening on Sundays.
1) Document the calculations Katie made to determine her figures of $591 and $910.