Calculate the break-even sales revenue and units for the two models of snowboards proposed. Calculate the net profit for the sales target of 10,000, 15,000 and 25,000 units of each product.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate the break-even sales revenue and units for the two models of snowboards proposed. Calculate the net profit for the sales target of 10,000, 15,000 and 25,000 units of each product.

 

Proposed Pricing for two models under consideration
Selling Price
$299.00 Base
$399.00 Deluxe
Variable Costs - Costs per Model
Raw Materials
$50.00
$95.00
Packaging
15.00
20.00
$55.00
$115.00
Transcribed Image Text:Proposed Pricing for two models under consideration Selling Price $299.00 Base $399.00 Deluxe Variable Costs - Costs per Model Raw Materials $50.00 $95.00 Packaging 15.00 20.00 $55.00 $115.00
Annual Fixed Costs
Labour
(2x $20 x 40 x 52) $83,200
Rent
25,000
Promotion
40,000
Occupancy costs
7,000
Total Fixed Costs
$155,200
Transcribed Image Text:Annual Fixed Costs Labour (2x $20 x 40 x 52) $83,200 Rent 25,000 Promotion 40,000 Occupancy costs 7,000 Total Fixed Costs $155,200
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