ABC is a company that manufactures a type of docking station for a laptop. You will analyse its income statement for the 2014 fiscal year (shown below).
|
Sales
|
£2,400,000
|
|
Variable cost of goods sold
|
1,680,000
|
|
Variable sales commissions
|
120,000
|
|
Contribution margin
|
600,000
|
|
Selling expense
|
105,000
|
|
Sales commissions expense
|
48,000
|
|
Administrative expense
|
212,000
|
|
Net income
|
235,000
|
Variable costs per unit are £6.
Required: (Round all answers to 2 decimal places and show ration calculation used. Display in table format)
- Calculate break even in pounds.
- Calculate break even in units.
- Calculate break even in pounds if the sales price increases by 10% and fixed costs increase by £12,000.
- Calculate break even in pounds if total sales increase by 10% and fixed costs increase by 10%.
- Calculate sales (in pounds) to achieve £600,000 after tax (tax rate is 40%).