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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

problem1: Compute the annual breakeven point in unit Sales and Dollar sales

problem2: If 20,000 units were sold determine the net income or loss

problem3: If 25,000 were sold determine the margin of safety and margin of safety ratio

problem4: If one was to consider the elimination of sales commissions & increasing salaries by $82,000 yearly.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922805

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