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The Breakeven 1) Calculate the breakeven quantity and value. 2) calculate the sales quantity if the company wants to deliver a net profit before tax
The Breakeven
Sales (30 000 units @ R80 / unit) 2400000 Less: Cost of goods sold Variable cost of production Fixed cost of production Gross margin Less: Selling and administrative expenses Variable selling expenses Fixed selling expenses Net profit before tax 1800000290000310000 1) Calculate the breakeven quantity and value.
2) calculate the sales quantity if the company wants to deliver a net profit before tax of 180 000 and the existing structure remains the same.
3) Calculate the breakeven quantity if the variable production cost per unit increase by $4
4) Calculate the revenue if the variable production cost per unit decrease by $4 and the company would like to to deliver a net profit before tax of $250 000
5) Calculate the profit if the variable selling cost per unit increases by $1, the selling price per unit drops to $75 per unit and the firm sells 40 000 units.
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