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6. International Conventions overhead costs to produce the 3 day Marketing Conference is $90,000 and their advertising costs are $50,000. They estimate that the variable
6. International Conventions overhead costs to produce the 3 day Marketing Conference is $90,000 and their advertising costs are $50,000. They estimate that the variable costs for each attendee including meals and materials are $350. They are charging a registration price per attendee of $1,500. (3 Marks) i) What are the break even number of attendees? j) If the target return is $50,000, what are the contribution target break even numbers of attendees? k) If the international Conventions raised their prices per attendee to $2000 what would their new break even attendance be? 7. Zinc Energy Co has launched a new battery that uses new zinc- air technology. The unit costs for the batter are: battery housing of $8, materials $6 and direct labour $6 per unit Retooling of the factory will add a one time additional fixed cost of $ 1 million in equipmnmet. Annual fixed costs include sales, marketing and advertising expenses of $1 million, general and admin expenses of $ 1 million and other fixed costs totaling $2 million. (3 Marks) a. What is the total variable cost associated with the new battery? b. What are the total fixed costs of the new battery? c. If the price is set at $35 for the new battery what would the break even point be in units? In $ sales? 8. Prepare an Income Statement - label each line of the Income statement including the numbers you calculate (6 Marks) Sell 2000 units SP = $80 per unit Cost of Goods = $60 per unit Fixed Administrative costs = $ 20,000 Marketing Expenses= $5000 $ Sales Profit
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