CVP relation and profit planning, contribution margin ratio approach (LO1, LO2). Shari Kay owns and operates Perfect Petals, a successful florist shop in Bloomington, Indiana. Shari estimates that her...

Shari Kay owns and operates Perfect Petals, a successful florist shop in Bloomington, Indiana. Shari estimates that her variable costs are $0.25 per sales dollar (i.e., variable costs represent 25% of revenue) and that her fixed costs amount to $6,000 per month.

Required:

a. How much revenue does Shari need to generate each month to break even?

b. How much profit per month would Shari earn if her revenues were $10,000 per month?