|
Sales Price
|
$30.00
|
|
Per unit Variable Expense Purchase Cost
|
$15.50
|
|
Sales Commission
|
$4.50
|
|
Total Per Unit Variable Cost
|
$20.00
|
|
Total Annual Fixed Expenses
|
|
|
Advertising
|
$20,000
|
|
Rent
|
$25,000
|
|
Salaries
|
105,000
|
|
Total Fixed Expenses
|
$150,000
|
Question1: Compute the annual breakeven point in unit Sales and Dollar sales
Question2: If 20,000 units were sold determine the net income or loss
Question3: If 25,000 were sold determine the margin of safety and margin of safety ratio
Question4: If one was to consider the elimination of sales commissions & increasing salaries by $82,000 yearly.