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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