Lou has started a new business selling roller blades. Each set of blades will cost $100 and will retail for $150. The annual rent is $5,000.

Required: Assuming that 100 units are sold, calculate and provide the following:

Sales

$

Variable Costs

$

Contribution Margin

$

Fixed Costs

$

Profit (Loss)

Note: you must state if profit or a loss

$

Question 28

CalcCo sells calculators at a unit price of $60.00. The variable cost per unit is $20.00, with fixed costs of $160,000.

Required:

( a ) Sales breakeven in units

( b ) Sales breakeven in dollars

( c ) Complete the table for the following levels of activity:

Activity (units)

0

1,000

2,000

3,000

4,000

5,000

6,000

Total

Revenue $

Total

Costs $