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 4 |Page 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 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 4 |Page 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 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

Section: Chapter Questions

Problem 1Q

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