Just Organic Juices sells bottles of freshly squeezed organic juice to small boutique shops throughout Melbourne. Its latest income statement for the last 12 months is as follows:-

Just Organic Juices

Income Statement

Sales (155 000 bottles @ $5)

775 000

Cost of goods sold (155 000 bottles @ $3.50)*

542 500

Gross Profit

232,500

Less: Other expenses

Advertising

10 000

Managers salary

65 000

Occupancy and administration

20 000

95 000#

Net Profit

137 500

* variable costs

# fixed costs

Required:

(a) Calculate the contribution margin per juice bottle.

(b) Calculate the number of juice bottles to break even in both units and sales dollars

(c) The company expects to make a net profit of $180 000 in the coming year.

(i) How many units will be sold at this level of activity?

(ii) What will the sales in dollars be at this level of activity?

(iii) What will the gross profit be at this level of activity