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hapter 3 Homework 3 of 4 (4 complete) HW Sco anufacturer of quality handmade walnut bowls, has had a steady growth in sales f
hapter 3 Homework 3 of 4 (4 complete) HW Score: 98 manufacturer of quality.handmade walnut band has had a steady. sales for t
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Answer #1
1. Projected Net Income -2017
Selling Price p.u $34.00
-Variable cost p.u -$13.60
Contribution p.u $20.40
*No. of units 21000
Total Contribution $4,28,400.00
-Fixed Costs -$2,85,600.00
Income before Tax $1,42,800.00
-Tax @40% -$57,120.00
Net Projected Income $85,680.00
2. Break-even Point in units - 2017
=Total Fixed Cost/Contribution p.u
=285600/20.4
14000
3. Net Income-2018
Revenue $8,16,000.00
-Variable cost -$3,26,400.00 =-13.6*24000
Total Contribution $4,89,600.00
-Fixed Cost -$2,85,600.00
-Additional Mktg cost -$12,240.00
Income before Tax $1,91,760.00
-Tax @40% -$76,704.00
Net Projected Income $1,15,056.00
4. Break-even Point in units -2018
=Total Fixed Cost/Contribution p.u
=(285600+12240)/20.4
14600
5
Revenue $7,67,040.00
-Variable cost -$3,26,400.00 =-13.6*24000
Total Contribution $4,40,640.00
-Fixed Cost -$2,85,600.00
-Additional Mktg cost -$12,240.00
Income before Tax $1,42,800.00
-Tax @40% -$57,120.00
Net Projected Income $85,680.00
6
Revenue $8,16,000.00
-Variable cost -$3,26,400.00 =-13.6*24000
Total Contribution $4,89,600.00
-Fixed Cost -$2,85,600.00
-Additional Mktg cost -$13,990.00
Income before Tax $1,90,010.00
-Tax @40% -$76,004.00
Net Projected Income $1,14,006.00

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