Calculate the contribution margin per unit

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Reference no: EM132821108

Question - The business is registered for GST. He has provided you with the following information in relation to the 2021 FY budget: Estimated sales units for the year: 10,000 units

Selling price per unit: $11.00 (GST Inclusive)

Based on the above sales units and dollars, the following expenses are expected to be incurred in 2021 FY:

Rent of Premises (GST Inclusive) $44,040.00

Salaries - Sales Staff $68,000.00

Salaries - Office Staff $80,400.00

Sales Commission Expense - @2.5% of sales revenue $2,500.00

Unit cost - variable (GST Inclusive) $44,000.00

Interest on Loan (Loan $30,000 @ 8% per annum) $2,400.00

Office supplies expense $2,760.00

Depreciation - Shop Fittings $6,480.00

Depreciation - Computer Equipment $4,200.00

Required -

(a) Calculate the contribution margin per unit. Show workings.

(b) Calculate the total annual fixed costs. Show workings.

(c) Calculate the breakeven point in units. Show workings.

Reference no: EM132821108

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