If beginning inventory is $15,000 at cost and ending inventory is $25,000 at cost and cost of goods sold for the period is $100,000, what is the inventory turnover rate for this company in this time period? Is this a good or bad rate? In general, do you want this number to be higher or lower? Is it possible for the turnover rate to be too high? What would this be an indication of?
If we sell 1000 units at $15 per unit, what is our gross revenue?
If we sell 1000 units at $15 per unit, but 100 units are returned, what is our net revenue?
If we sell 1000 units at $15 per unit and have $5 variable cost per unit, what is our per unit contribution? What was total contribution?
If we sell 35,000 units at $9.75 per unit and have $5 variable cost per unit, what is revenue, variable costs, per unit contribution and total contribution?
If we sell 5000 units at $12 per unit and have $7 variable cost per unit, what is our revenue, variable costs, per unit contribution and total contribution?
Consider the previous problem. Let’s say our fixed costs are $35,000. What is our net profit? What is our breakeven point?
We sell 1000 units at $15 per unit. Variable costs per unit are $5. Our fixed costs are $6000. What is our breakeven point and how far above that point are we?
For the situation in the previous problem, because of supplier changes, we know our variable costs will increase next year to $8 per unit and our fixed costs are increasing by 20%. What is the new breakeven point? How many more units will we have to sell in order to maintain the total profits from the previous problem?
We sell 1000 units to wholesalers, who sell these units to distributors, who sell these units to retailers who sell these units to consumers. Consumers are paying $15 per unit. Retailers get a 30% margin, distributors receive a 10% margin, and wholesalers receive a 15% margin. Our variable costs are $4 per unit. What is our price per unit, our contribution per unit and our total contribution?