Q2: to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: (1) the sales price for each CompuTech product sold is $50; (l) each product sold costs $25 in Raw Material components; and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? What impact would occur to the BE if the variable cost of materials rose by 10% during the year? Q3:1 of the overall market for computer products in CompuTech's market area is 3,000 units what share of the market does its BE (21) represent? What share of the market does CompuTech's unit sales in 2021 represent? Q4: f CompuTech were to hire a Sheridan student (annual cost for Part Time service $20,000 per year) to help in the marketing of Computech, what would the impact be on the company's BE? as: If the Sheridan student could impact unit sales by 20% growth, would their hiring be justified? Explain. Q6: With the following information for 2022 prepare a pro-forma Income Statement for the year ending December 31, 2022, and then, calculate CompuTech's (a) income before taxes, (b) contribution margin and (c) PV ratio. RM Purchases $205,000 Freight in 60,000 4,000 Sales Salaries: Q2: to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: (1) the sales price for each CompuTech product sold is $50; (l) each product sold costs $25 in Raw Material components; and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? What impact would occur to the BE if the variable cost of materials rose by 10% during the year? Q3:1 of the overall market for computer products in CompuTech's market area is 3,000 units what share of the market does its BE (21) represent? What share of the market does CompuTech's unit sales in 2021 represent? Q4: f CompuTech were to hire a Sheridan student (annual cost for Part Time service $20,000 per year) to help in the marketing of Computech, what would the impact be on the company's BE? as: If the Sheridan student could impact unit sales by 20% growth, would their hiring be justified? Explain. Q6: With the following information for 2022 prepare a pro-forma Income Statement for the year ending December 31, 2022, and then, calculate CompuTech's (a) income before taxes, (b) contribution margin and (c) PV ratio. RM Purchases $205,000 Freight in 60,000 4,000 Sales Salaries
