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The following information relates to La Rouge Perfumes Ltd: Selling price per bottle $225 Variable costs per bottle: Direct material $70 Direct Labour $35 Manufacturing

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The following information relates to La Rouge Perfumes Ltd: Selling price per bottle $225 Variable costs per bottle: Direct material $70 Direct Labour $35 Manufacturing Overhead $15 Selling costs $20 Total variable costs per bottle $140 Annual fixed costs: Manufacturing Overhead 250,000 Selling and Administrative 250,000 Total Fixed costs 500,000 Forecast annual sales (8500) 1912500 NB: As you can't manufacture part of a unit please round your answers up. 1. Break even point in units for La Rouge Perfumes Ltd: (1 mark) (Enter amount only, do not use decimal points or commas) 2. Break-even point in sales dollars for La Rouge Perfumes Ltd: (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 3. How many bottles would La Rouge Perfumes have to sell in order to earn a profit of $795,000? (1 mark) (Enter amount only, do not use decimal points, dollar signs or commas) 4. What is the firm's Safety Margin? (1 mark) (Enter amount only, do not use dollar signs, decimal points or commas) 5. How many bottles would La Rouge Perfumes have to sell in order to earn a profit of $795,000 after tax? Assume La Rouge Perfumes pays income tax of 30% (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 6. Management of La Rouge Perfumes estimates that the variable manufacturing overhead costs will increase by 10% next year. How many units will the company have to sell next year to reach break-even point? (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas)

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