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Assume that a company of 20 employees meet 5 hours and receives $100 per hour. There are 6 directors who meet 5 hours and receive $200 per hour. Marketing expenses is $10 000. The projected cost of material is $12 000 for 100 units. A sales commission of 10% is charged.
Calculate:
Total fixed cost
Variable cost
Product price
Break-even Point 20marks
Fixed Cost
Wages (staff) = $
Wages (Directors) = $
Marketing expenses = $
Total Fixed Cost = $
Variable Cost
Projected cost of material = $
Divided by number of units = $
Material cost per unit = $
Product Price
Price #1 Price #2
Net price $500 $600
Variable cost
Sales Commission 10%
Material Cost per unit
Gross profit (units)
Break-Even Point
Price #1 Price #2
Fixed cost
Divided by gross profit
Break-even point (units)
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Assume that a company of 20 employees meet 5 hours and receives $100 per hour. There are 6 directors...
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