2.4 Cost-Volume-Profit

(where applicable, round your answers to the nearest whole number) (ensure you include the relevant measurement such as $ or unit)

	Electric Vehicle Battery	Working	Answer
1	Contribution Margin (CM)
2	Break-even point (BEP)
3	Sales units required for $5m profit

Table A-1

Cost/Expense item	Amount ($)
Cost of goods sold	1,200,000
Sales Salaries expense	450,000
Office Salaries expense	400,000
Advertising expense	350,000
Office supplies expense	328,000
Rent expense	840,000
Insurance expense	230,000
Utilities expense	290,000
Depreciation expense	282,000
Interest expense	280,000
Tax expense	350,000
Total	5,000,000

Table A-2

Accounts	Amount ($)
Accounts receivable	4,600,000
Accounts payable	5,200,000
Bank	950,000
Capital	15,000,000
Dividends paid	650,000
Equipment	12,000,000
Fixtures	2,500,000
GST Collected	800,000
GST Paid	350,000
Inventory	1,950,000
Land and Buildings	28,000,000
Mortgage	27,000,000