CVP Analysis - Goodstart Ltd
						Fixed cost		Variable cost
Production costs
	Direct materials						$3.00
	Direct labour						$3.50
	Factory Overhead				$150,000		$1.50
Selling Expenses
	Sales salaries and commissions		$62,000		$2.50
	Advertising				$53,200
	Miscellaneous selling			$8,900
General Expenses
	Office salaries				$9,600
	Supplies					$27,000		$2.50
	Miscellaneous general			$22,600

Additional information:

• The selling prices is $19 per unit.
• Income tax rate is 30%.
• It is budgeted that the company is going to sell 80,000 units in the coming year.

Required:

1. Calculate the following (please show calculations/workings)

1. The contribution margin ratio.
2. The breakeven point in units.
3. The number of units to be sold for the company to make a before-tax profit of $30,000.
4. The revenue to be generated for the company to make an after-tax profit of $30,000.
5. The net profit based on budgeted sales of 80,000 units in the coming year.
6. The safety margin (in dollar amount) based on the budgeted sales of 80,000 units.