Problem $01$ : Cost structure analysis: Sakura inc.

Sakura Inc. sells tableware sets. In the fiscal year ending November $30,207,$ it sold

$25,000$ sets of its famous "Barnyard Animals" line. Here are the latest results.

SAKURA inc.

Income statement

for the year ended november $30,207$

$($full cost method$)$

Expenses

Selling expenses

Administrative expense

Income before taxes

Income taxes

Net Income

For the next fiscal year $(20$X$8),$ no major change is expected in the number of units sold.

However, the new employee collective agreement will increase variable sales costs by

$5\%.$ On the other hand, purchasing costs will decrease by $2\mathrm{.}5\%$ because the company

has found a new supplier. Sakura inc will nevertheless reduce its selling price by $4\%.$

WORK TO DO:

Determine the break$-$even point in units for $207(1$ point$).$

Determine the break$-$even point in dollars for $207(1$ point$).$

Calculate the sales required in the fiscal year ending $208,$ in order to achieve a pre$-$

tax profit equal to $15\%$ of sales. Specify the number of sets of dishes to which this sales

figure corresponds, and verify your calculations by preparing a full$-$cost income statement.

Don't forget to take into account any changes made to the budget for this year. $(2$ points$).$

Calculate the sales Sakura needs to achieve to bring its pre$-$tax profit to $$1$ million in

the fiscal year ending $208(1$ point$).$