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STAZE Clean sells an industrial floor cleaning product in a 19-litre bottle. The cost of the product is $70 per bottle. The company's fixed costs
STAZE Clean sells an industrial floor cleaning product in a 19-litre bottle. The cost of the product is $70 per bottle. The company's fixed costs for the year are $150,000. A competitive price for this product is $170 per bottle. Calculate the following costs. Show your calculations in full. (2 marks each =4 ) a) How many bottles of floor cleaning products does STAZE Clean need to sell at a competitive price to break even? b) At the competitive price of $120 per bottle, what will STAZE Clean profit if they sell 6,000 units? Assume STAZE Clean reaches a target of 1,000 bottles of floor cleaner sold in the first quarter. They expect to increase sales volume by 10% each quarter. Produce a SALES BUDGET for 2023. (7.5 marks)
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