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Question 1 (10 marks) Autumn Designs, a software design company are considering a new product. They have provided the following information: Selling price $125 Direct
Question 1 (10 marks) Autumn Designs, a software design company are considering a new product. They have provided the following information: Selling price $125 Direct materials $35 Direct labour $50 Fixed Costs $900 000 Estimated sales 30 000 units a) Calculate the contribution margin per unit. (3 marks) b) Calculate the break-even point in units. (3 marks) c) If Autumn Designs required a profit of $200 000, what would be the required sales in units? (2 marks) d) To achieve the profit of $200 000 what would be the required sales dollars? (2 marks)
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