Please complete the problems below. Make sure to show the formulas you used and your calculations. Each
Question:
Please complete the problems below. Make sure to show the formulas you used and
your calculations. Each problem is worth up to 3 pts.
Problem #1
Selling price per uint 50
Unit manufacturing cost 15
Sales commissions 10%
Employee Salary 6,000
Building rent 8,000
Shipping cost per unit 1
Internet + phone service 200
What is the variable cost per unit? (show how you got the number)
What is the fixed cost? (show how you got the answer)
How many units does the company have to sell to break even? (show how you got the answer)
Problem #2
Selling price per unit 50
Unit manufacturing cost 15
Sales commissions 10%
Employee Salary 6,000
Building rent 8,000
Shipping cost per unit 1
Internet + phone service 200
How many units does the company have to sell to make 50,000 profit? (show how you got the
answer)
Problem #3
Estimated demand (projected
sales) 20,000
Unit manufacturing cost 15
Sales commissions per unit $2
Employee Salary 6,000
Building rent 8,000
Shipping cost per unit 1
Internet + phone service 200
What is the break-even price? (show how you got the answer)
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill