John is the sole owner of 'Dude Mug Shop'. The business is registered for GST. He has
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Question:
He has provided you with the following information in relation to the 2021 FY budget:
Estimated sales units for the year: 10,000 units
Selling price per unit: $11.00 (GST Inclusive)
Based on the above sales units and dollars, the following expenses are expected to be incurred in 2021 FY:
Rent of Premises (GST Inclusive)
$ 44,040.00
Salaries - Sales Staff
$ 68,000.00
Salaries - Office Staff
$ 80,400.00
Sales Commission Expense - @2.5% of sales revenue
$ 2,500.00
Unit cost - variable (GST Inclusive)
$ 44,000.00
Interest on Loan (Loan $30,000 @ 8% per annum)
$ 2,400.00
Office supplies expense
$ 2,760.00
Depreciation - Shop Fittings
$ 6,480.00
Depreciation - Computer Equipment
$ 4,200.00
Required:
(a)
Calculate the contribution margin per unit. Show workings. [2 marks]
(b)
Calculate the total annual fixed costs. Show workings. [2 marks]
(c)
Calculate the breakeven point in units. Show workings. [2 marks]
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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