Question 3a CVP

Bryson Ltd manufactures and sells golf sets throughout Australia.

Bryson Ltd sold 90,000 golf sets in the 2021 financial year. Total sales were $10,080,000 and the corresponding cost of sales was $4,950,000 (cost of sales was considered as a variable cost).

In addition, other expenses incurred by the company were as follows:

	Advertising Division	Management Division
Variable cost (per golf set)	$4	$6
Fixed cost	$1,400,000	$2,100,000

Required:

3a Calculate Bryson Ltds contribution margin per unit.

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Answer 3a:

Selling price for golf sets = $10,080,000/90,000(golf set) = $112 per golf sets

variable cost per unit:

cost of sales per unit= $4,950,000/90,000(gold set)= $55 per golf set

advertising division( variable cost)= $4

total variable cost per unit = % 59

so contribution margin per unit = $112 -$59=$53)

3b) Using the relevant information in 3a, calculate Bryson Ltds breakeven point in units and dollars.