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Faux Beauty Ltd (FBL), located in Sydney, produces and sells luxury bathroom and spa products for 5* Hotels to use in their rooms and suites.

Faux Beauty Ltd (FBL), located in Sydney, produces and sells luxury bathroom and spa products for 5* Hotels to use in their rooms and suites. The company has been producing these products for the Australian market for over 20 years and are considered leaders from both a quality and efficiency perspective by their customers. Faux Beauty Ltd suffered a severe drop in sales and profit performance for the year ended 30 June 2019. This has been correlated to increased pressure from overseas competitors in the luxury spa cosmetic market. The Income Statement revealed that net sales were $1 500 000 with a profit of $310 000. Unit sales were 300000, and total costs were $1 190 000. A breakdown of costs and expenses is presented below:

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Fixed Variable Total Cost of Sales( includes manufacturing $350 000 $600 000 $950 000 costs Selling, Marketing and Distribution 108 000 36 000 144 000 Expenses General and Administrative Expenses 72 000 24 000 96 000 Total $530 000 $660 000 $1 190 000

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