User Account

All Pages

Calculate the total annual fixed costs

Assignment Help Accounting Basics
Reference no: EM132786738

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:

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

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

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

Reference no: EM132786738

Questions Cloud

Explain the difference between data and information : Explain the difference between data and information. Identify the categories of data that you supplied on your college application
Write brief memo for the payroll manager with recommendation : The payroll department would like to see a more structured, Write a brief memo for the Payroll Manager with your recommendation for a new process.
How could public have known that fraud was being perpetrated : How could the public have known that fraud was being perpetrated? How did the business hide the fraud from its clients/the public?
What are the countries included in continent of australia : What are the countries included in the continent of Australia? Is Australia continent the same as Oceania? Explain.
Calculate the total annual fixed costs : Calculate the total annual fixed costs. Based on the above sales units and dollars, the following expenses are expected to be incurred in 2021 FY
Real wage during the first month of the recovery : Calculate the real wage during the first month of the recovery, 12/82 and compare it to the real wage right before the following recession
What are some pitfalls of approach : What are some pitfalls of this approach? Is GDP per capita enough to really assess an economy with?
Compare the market value of the total outputs : Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production?
Determine major aspects that demonstrate old world exchanges : Determine three (3) major aspects that demonstrate Old and New World exchanges. List five (5) specific groups that were affected by this event.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd