The Income Statement

Lets say that you sell 100 packs(units)on average per month.

Stress-Buster Company Income Statement Month Ended September 30, 2021

Sales(100x$10.00)-$1,000

Less cost of goods sold(100x$6)-$600

Gross profit(100x($10-$6))-$400

Less fixed costs-

Salaries-$240

Advertising-$40

Table rental-$20

Total fixed costs-$300

Net income(Profit)($400-$300)- $100

Part 2: Using the assumptions from the Stress-Buster base case example in the supplemental reading, and assuming the cost from Dollar Store increase to $7. You want to breakeven with 50 units. Assuming the fixed costs stay the same as in the base case, what would your price per unit be? Fixed costs Variable cost per unit - Target breakeven units = Calculate required contribution margin per unit Calculate required breakeven price per unit = $ $ $ Stress-Buster Company Income Statement Month Ended September 30, 2021 Sales (50 units x $ ) Less cost of goods sold (50 units x $ Gross profit (50 units x ($ )) Less fixed costs Salaries $ Advertising $ Table rental $ Total fixed costs $ Net income (Profit)