Potter Pty Ltd provides a laundry service to the health industry. There is a service fee of $12.00 per kilogram for all items. The business expects to collect and launder 9,600kgs per month. The business has monthly fixed costs of $15,000 and variable costs of $7.20 per kg. The company tax rate is 30%.

Required:

• What is the contribution margin per kilo?
• How many kilograms must be laundered to break-even?
• How many kilograms will need to be laundered if the business wants to achieve a profit before tax of $8,640
• If the business wants to make a profit of $2.40 per kg before tax, how many kgs must be laundered?
• How many kgs must be laundered to make a monthly profit of $2,352 after tax?