4x 6 md me would be 5 x 7 or 8 X 10. Quick Photo's projected statement of incons for the first year of operations is as follows Mumbe of print developed Leve Direct marcials Direct labour Depreciation Supevision Gross profit Opersing expeme Dumbien Salanes -Sales commission Advertising Subcoel Admixumeria expun Salases Insuance Ren Depeciation Subtoel Finano con Irofit before taxel com tax expens ofit br the year 1(250,000) (265,000) (78,000) BOXXOON (230,000) (110,000) (185,000) (20,000) (60,0000) (33.000) 5,000,000 $1,900,000 0673,000 927.000 1648.000 219,000 E 128 000 Questions 1. Calculate Tony's becak-even point revenue and the east break-evet! poart in reversur 2. How many prints a year and what level of revenus at Tony reach il he vants to earn $275,000 in prod before sea? 3. CalailateTony's annual revenue break-even point by using the PV ratic if it is to meet the $275,000 profit before tax peal. 4. If he inteases his advert sing budget by $20,000 what would be Taw's now pritly break even paint in prints and in reremue? Hew mary additional prants must Tony develop to increase his revenuse to cover the incremental advernang budget! Ca 215 5. It Tony redu es in direct naterall costs for processing the prats by $25,00, what would be his new break-even point in units and in reseaine

4 X 6 and some would be 5 X 7 or 8 X 10. Quick Photos projected statement of income for the first year of operations is as follows:

Number of prints developed

Revenue

Cost of sales

Direct materials

" Direct labour

Depreciation

Supervision

Total cost of sales

Gross profit

Operating expenses

Distribation costs

Salaries

Sales commission

Advertising

Subtocal

Administration expesses

Salaries

Insurance

Rent

Depreciation

Subtotal

Finance costs

Total

Profit before taxes

Income tax expense

Profit fos the year

5,000,000

$1,600,000

$(250,200)

(265,200)

(78,000)

(80.000)

(673,000)

927,000

(230,000)

(110,000)

(25,000)

(365,000)

(185,000)

(20,000)

(60,000)

(33,000)

(298.0001

(35,000)

(698.000

229,000)

(101.000)

128,000

Questions

1. Calculate Tony's break-even point in revenue and the cash break-even point in reveme.

2. How many prnts a year and what level of revenue must Tony reach if he wants to earn $275,000 in profit before texes?

3. Calculate Tony's annual revense break-even point by using the PV 4. If he increases his advertising budget by $20,000, what would be Tony's new yearly break-even point in prints and in revenue? How mary additional prints must Tony develop to increase his revenue to cover the incremental advertising budget?

5. If Tony reduces his direct matrial costs for processing the prints by

$25,00C, what would be his new break-even point in units and in

46 md nme wonl be 57 or 810 . Quick Phato ryogeted statemeat of incors for the fist yar of aperition is in follenk: Qrevtiens 1. CalaalateToeny brok-evm point n renenar and the cash brak-ever poirt in eversa 2. Hoy mus pros a year and wlas level of revenut ieust Tary rewch if he varits to einn 8775,000 in peod before uxer? 3. Calsilate Tony m anacal arvense bruk-even zoint by waber ihe IV. rotir if lus in eo mien the s27t noob grafa before car boul. 4. If he iscesces bis afvertang suifer by 120,000 what woud be Taewk now yeuly trenkieves poie in jrins and a rentar' Hew bary aditional prese nuat Tamy Aevelop to isenase tis reweect to cowr the insremenal advrriang budeel? 5. If Tociy eestar in in datcr natendi coes for procestas the peace ty 525,00, whet would ae ha new berik-ecen puint al uaist wht in ievenuet 46 md nme wonl be 57 or 810 . Quick Phato ryogeted statemeat of incors for the fist yar of aperition is in follenk: Qrevtiens 1. CalaalateToeny brok-evm point n renenar and the cash brak-ever poirt in eversa 2. Hoy mus pros a year and wlas level of revenut ieust Tary rewch if he varits to einn 8775,000 in peod before uxer? 3. Calsilate Tony m anacal arvense bruk-even zoint by waber ihe IV. rotir if lus in eo mien the s27t noob grafa before car boul. 4. If he iscesces bis afvertang suifer by 120,000 what woud be Taewk now yeuly trenkieves poie in jrins and a rentar' Hew bary aditional prese nuat Tamy Aevelop to isenase tis reweect to cowr the insremenal advrriang budeel? 5. If Tociy eestar in in datcr natendi coes for procestas the peace ty 525,00, whet would ae ha new berik-ecen puint al uaist wht in ievenuet