Reference no: EM132731187
Question - Armin Sole Proprietorship just started this 2020. Since the business is not fully operational, the proprietor wants to ask your advice in determining the level of units needed to make the business breakeven.
Here are the financial data for you to analyse:
1. Selling price per unit is $80.
2. Variable cost per unit is $50.
3. The insurance of the company includes $1,000.
4. Rent of the store amounts to $5,000.
5. Depreciation of the equipment is $3,000.
Required -
1. Compute for the total fixed cost of the company.
2. Compute for the contribution margin percentage.
2. Compute for the breakeven sales in units.
3. Compute for the breakeven sales amount in $.
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