Quantitative skills in the Control Function of Management are very important. It helps managers see how the business is doing and what improvement can be made. Please solve problems for Breakeven Point and Income Statment.

Breakeven Point:

Fixed Cost is $$20,000$ per month

Your price is $$50$ per unit

Variable cost is $$20$ per unit

Breakeven Point $=20,000/(50-20),$ Whats the breakeven point, How many units do they have to sell to breakeven?

Income Statement:

We sold $50,000$ t$-$shirts at $$15$ each in $2019$

The cost to produce was $$8$ each

Whats the gross profit?

We built a website that cost us $$20,000$

We spent $$60,000$ on online ads

Wages were $$180,000$

Depreciation of office equipment was $$12,000$

Whats the total operating costs?

Whats the operating profit?

What cost can we reduce to be more profitable?

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