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.