prepare operational budgets

Q1: Background information provided for Jones Ltd. Jones Ltd produces a single product. Cost and revenue details are as follows: Selling Price Variable Cost Contribution Margin $75.00 per unit $-45.00 per unit $ 30.00 per unit 100% 60% 40% Total Fixed Cost $ 720,000.00 per annum Answer the following questions regarding Jones Ltd: Q1.1 Calculate sales breakeven in dollars ($). MR FER Use the formula to calculate sales breakeven amount Q1.2 Prepare an Income Statement at a sales level of 24,000 units. MR FER Sales revenue Less: Variable costs Contribution margin Less Fixed costs Profit before tax