Financial calculations for fiscal year
Not what you're looking for?
The income statement for ABC's 2012 fiscal year is presented below. ABC manufactures one type of street lamp used on municipal roads.
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.
Complete the following:
Please note: Round all answers to two decimal places.
1. Calculate break-even in pounds.
2. Calculate break-even in units.
3. Calculate break-even in pounds if the sales price increases by 10% and fixed costs increase by £12,000.
4. Calculate break-even in pounds if total sales increases by 10% and fixed costs increase by 10%.
5. Calculate sales (in pounds) to achieve £600,000 after tax. (Note: The tax rate is 40%.)
Please add if possible some calculation comments + conclusion.
-> Attached the original file with correct tabulations for better understanding.
Purchase this Solution
Solution Summary
This solution would explain the calculation of break even.
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
Recent Feedback
- "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
- "thank you!"
- "Thank you again Jayant. You are super fast. "
- "Thank you Jayant. You are appreciated. "
- "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.