Calculation of total fixed cost
Salary of Amy( $14,000 * 12) $168,000
Office Building Rent($4,000*12) $48,000
Office and Selling staff salary($22,000*12) $264,000
Factory Rent $60,000
Depreciation $45,000
Renee's Salary $152,000
Factory Insurance $8,000
Sick and Vacation Pay $25,000
Total annual fixed cost $770,000
Calculation of variable cost per unit
Metal $11,000
Glass $2,000
Paint $800
Labor cost($35 * 220) $7,700
Miscellaneous Factory Cost-
Equipments $500
Lubricants $300
Wasted Raw materials $100
Selling Staff Commisison $150
Shipping cost $450
Variable cost per unit $23,000
Selling Price Per unit = $34,000 per unit
Contribution per unit = Selling Price Per unit - Variable cost per unit
= $34,000 - $23,000
= $11,000
Break Even Point(units) = Fixed Cost / Contribution per unit
= $770,000 / $11,000
= 70 units
Break Even Point(sales) = 70 units * $34,000
= $23,80,000
Margin of safety sales = Total Sales - Break even point sales
= 120 units - 70 units
= 50 units
what is the breakeven levels of slaes in units and jn revenues ans what is the...
Karmin manufacturing inc., (KMI), makes cars and has just decided to start manufacturing a new model, to be called Queen Herbie (QH), based on the Karman Ghia and VW bug, and is setting up a new division to make the new model. The budget for the first year for the new division follows. The two main parts of the new division will be the office administration run by Amy, and the factory plant run by Renee. Amy will have a...
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1.) calculate unit contribution
2.) calculate breakeven
3.) what is the profit impact for model peb9159sfss
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