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Question - Beach Boys Surfboards Ltd provides the data below relating to its Longboards product for 2021:
Selling price per Longboard $700
Annual fixed manufacturing costs $625,000
Annual fixed non-manufacturing costs $260,000
Variable manufacturing costs per Longboard $100
Variable selling costs per Longboard $50
Annual sales volume expected in 2021: 5,000 Longboards
Required -
Question 1: Calculate the breakeven point in units and sales dollars.
Question 2: Generate a contribution margin income statement for 2021 if 18,000 Longboards are sold.
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