All the other costs are to be assumed if fixed or variable
except:
50% Marketing is Fixed
50% Freight is Fixed
40% Admin is Fixed
Need Break even for the following data
Year 1- 2022 January February March April May June July August September October November December Total Expected unit sales in metric tor 1; 2; 3; 4 1,000 1,000 1,000 1,400 1,960 2,100 2,310 2,550 3,580 5,080 6,800 8,720 37,500 Unit price/metric ton X $200 X $200 X $200 x $200 X $200 X $200 x $200 X $200 X $200 X $200 X $200 x $200 X $200 Total Sales (CAD $) 2,00,000 2,00,000 2,00,000 2,80,000 3,92,000 4,20,000 4,62,000 5,10,000 7,16,000 10,16,000 13,60,000 17,44,000 75,00,000 (in income statement) Year 2- 2023 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected unit sales in metric tor 5; 6 15,000 12,250 12,000 17000 56,250 Unit price/metric ton X $200 X $200 X $200 X $200 X $200 Total Sales (CAD $) 30,00,000 24,50,000 24,00,000 34,00,000 1,12,50,000 Year 3- 2024 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected unit sales in metric tor 5; 6 21,000 16,000 15,000 23,000 75,000 Unit price/metric ton X $200 X $200 X $200 X $200 X $200 Total Sales (CAD $) 42,00,000 32,00,000 30,00,000 46,00,000 1,50,00,000Assumptions Pinnacle Renewable Energy Inc Date 08-07-2021 Cost of Goods Manufacturing Schedule See Chapter 2 2022 2023 2024 Work In Process, January 1 50,000.00 50,000.00 Direct Materials Raw materials inventory 5 0 0 30,000.00 30,000.00 Raw Materials purchased 18,75,000.00 28,12,500.00 37,50,000.00 Total Raw Materials available for use 28,42,500.00 37,80,000.00 Less: Raw materials inventory, Dec 31 1,00,000 1,00,000 Direct Materials used 18,75,000.00 27,42,500.00 36,80,000.00 Direct labor 3 11,25,000.00 16,87,500.00 22,50,000.00 Manufacturing Overhead 4 Indirect Labour Factory repairs Factory utilities Factory depreciation Factory insurance Other miscellaneous Total Manufacturing Overhead 18,75,000.00 28,12,500.00 37,50,000.00 Total Manufacturing Costs 48,75,000.00 72,42,500.00 96,80,000.00 Total Cost of Work in Process 48,75,000.00 72,92,500.00 97,30,000.00 Less: Work in process, December 31 0 2,00,000.00 2,00,000.00 COST OF GOODS MANUFACTURED 48,75,000.00 70,92,500.00 95,30,000.00See Chapter 2 Assumptions Pinnacle Renewable Energy Inc Date 08-07-2021 INCOME STATEMENT 2022 2023 2024 Sales Revenue $75,00,000 1,12,50,000 1,50,00,000 Cost of goods sold Finished goods inventory, January 1 48,75,000 70,92,500 95,30,000 Cost of goods manufactured 4,70,000 4,80,000 5,00,000 Cost of goods available for sale 53,45,000 75,72,500 1,00,30,000 Less: Finished goods inventory, December 31 15,000 20000 21000 Cost of goods sold 53,30,000 75,52,500 1,00,09,000 Gross profit $21,70,000 36,97,500 49,91,000 Operating Expenses Marketing 21,000 25,400 27,800 Freight Cost 3,60,000 3,80,000 4,00,000 Seling and admin 22,100 24,000 26,000 Total expenses 4,03,100 4,29,400 4,53,800 Net income $ 17,66,900 $32,68,100 $45,37,200
