Reference no: EM13583428

Hand-in Assignment Question

The income statement for ABC's 2012 fiscal year is presented below. ABC manufactures one type of street lamp used on municipal roads.

Sales	2,400,000
Variable cost of goods sold	1,680,000
Variable sales commissions	120,000
Contribution margin	600,000
Selling expense	105,000
Sales commissions expense	48,000
Administrative expense	212,000
Net income	235,000

Variable costs per unit are £6.

Complete the following:

Please note: Round all answers to two decimal places.

1. Calculate break-even in pounds.

2. Calculate break-even in units.

3. Calculate break-even in pounds if the sales price increases by 10% and fixed costs increase by £12,000.

4. Calculate break-even in pounds if total sales increases by 10% and fixed costs increase by 10%.

5. Calculate sales (in pounds) to achieve £600,000 after tax. (Note: Thetax rate is 40%.)