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THIS QUESTION CONCERNS THE FIRST PART OF THE CASE Question 4 : What was the company's net income in March N (again using a contribution
THIS QUESTION CONCERNS THE FIRST PART OF THE CASE Question 4 : What was the company's net income in March N (again using a contribution income statement )? All figures are exclusive of tax. The company Vlo-buro assembles bicycles that can also be used in the office as a workstation, so that you can pedal while using your computer. Even if the em ployee has a conventional office desk, this allows him or her to combat the negative effects of a sedentary lifestyle by spending a few moments on the velo-buro during the day. This is the name the company has given to its product. The company was established on 1 ier January N with a total staff of 24 people in all functions. As the company is in its start-up phase, it assembles bikes to order and therefore has no inventories of finished products or components. All the bikes sold in a month were therefore as sembled in the same month. PART ONE: In January N, the company sold 155 Velo-buros at a unit price of 2,100. For this level of activity, it incurred the following expenses: - Component Batches (CBVB) used for the assembly of the Velo-Buros (CB for Component Batch and VB for Velo-buro): 170,500. - Staff costs including social charges (always for one month): - 1 director: 6,000 - 3 executives: 64,500 per person - 20 workers: 3,000 per person All employees, whoever they are, are hired on a full-time basis, there is no part-time work. - Other expenses (still per month): o Rent: 20,000 - Depreciation: 15,000 o Other fixed costs: 10,500. In February N, the company sold 160 velo-buros. Even if several workers are imvolved in the production of the same velo-buro, it is considered that a worker can produce a maximum of 8 vlo-buros per month. In March N, the company sold (and therefore manufactured) 181 Velo-buros. It therefore had to hire workers, under the contractual and financial conditions mentioned above. You give a numerical answer, without commas between thousands and units, without decimals, without the word " " and without spaces between your figures
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