Question: 1.Using your cost behaviour breakdown, calculate the Contribution Margin for each unit produced. (7 Marks) Ukrainian Bottling Company Inc. Income Statement For the Year Ended

1.Using your cost behaviour breakdown, calculate the Contribution Margin for each unit produced. (7 Marks)

Ukrainian Bottling Company Inc.

Income Statement

For the Year Ended October 31st, XXXX

Revenue

$650,000.00

Cost of Goods Sold

Labour

$75,000.00

Material

$50,000.00

Total Cost of Goods Sold

$125,000.00

Gross Profit

$525,000.00

Expenses

Packaging Labour

$67,000.00

Electricity

$14,000.00

Amortization

$32,000.00

Rent

$15,000.00

Shipping

$160,000.00

Total Expenses

$288,000.00

Net Income

$237,000.00

An executive summary of their financial position has been provided by the Ukrainian Management team; all of this information appears to be useful to them but, only some is relevant to you.Highlights of the financial figures are as follows:

Current number of unit produced:

12,000

Number of Employees on Staff:

521

Original cost of Smelting Machinery:

$85,000

Number of Shares Outstanding:

125,000

Trading Price per Share:

$12

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