Anticipated Costs: Calculate per year.

• Mortgage payments per month. $3000.00
• Yearly Depreciation on the building $7,000.00
• Yearly Depreciation on the manufacturing equipment 3000.00
• Management Salaries (for each brother, Jack, Steve and Jeff (3 of them) @ $50,000 each per year
• Hourly manufacturing labour. This is estimated at .5 hours or 30 minutes @ $30.00/hour for each unit.
• Property taxes per quarter $1850.00
• Yearly Insurance $3500.00
• Hockey stick design engineer. Yearly consulting fee: $4,500.00
• General administrative expense including bookkeeping services. This is paid monthly at a flat rate of $300.00
• Stick manufacturing materials such as resins, composite and labels to assemble each stick (unit) $8.00
• Manufacturing equipment (buying and setting up the shop and equipment make the Toe Drag hockey sticks $25,500.00
• Freight to ship the finished product to the retailers per unit $5.00

Here are your tasks:

Classify each cost as fixed or variable.

When tabulated:

Calculate the yearly total fixed cost.

Enter your answer for the FIXED COST

HERE: Answer

Calculate the variable costs for each unit

Enter your answer for the VARIABLE COST for each unit:

HERE: Answer

Calculate the unit contribution for each price. ($159.00, $179.00, and $189.00).

Enter your answer for unit contribution for $159.00

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Enter your answer for unit contribution for $179.00

HERE: Answer

Enter your answer for unit contribution for $189.00

HERE: Answer

Calculate the break-even units for each price ($159.00, $179.00, and $189.00).

Enter your answer to the break-even units for $159.00

HERE: Answer

Enter your answer to the break-even units for $179.00

HERE: Answer

Enter your answer to the break-even units for $189.00

HERE: Answer

Calculate the break-even sales for each price ($159.00, $179.00, and $189.00).

Enter your answer to the break-even sales for $159.00

HERE: Answer

Enter your answer to the break-even sales for $179.00

HERE: Answer

Enter your answer to the break-even sales for $189.00

HERE: Answer

Calculate the profit for the sales target of 5000 units for each price (($159.00, $179.00, and $189.00).

Enter your answer for the profit at a price of $159.00

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Enter your answer for the profit at a price of $179.00

HERE: Answer

Enter your answer for the profit at a price of $189.00

HERE: Answer