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Calculate the total annual fixed costs

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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

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