The Income Statement revealed that net sales were $1 500 000
with a profit of $310 000. Unit sales were 300000, and total costs
were $1 190 000. A breakdown of costs and expenses is presented
below:
Fixed Variable Total
Cost of Sales( includes manufacturing costs) $350 000 $600 000 $950 000
Selling, Marketing and Distribution Expenses 108 000 36 000 144 000
General and Administrative Expenses 72 000 24 000 96 000
Total $530 000 $660 000 $1 190 000
1. Using the information provided : a) Prepare an income statement for the year ended 30 June 2019 showing contribution margin.
b) What is the company’s 2019 break-even point in units?
c) What is the company’s 2019 break-even point in sales dollars?
Fixed Variable Total
Cost of Sales( includes manufacturing costs) $350 000 $600 000 $950 000
Selling, Marketing and Distribution Expenses 108 000 36 000 144 000
General and Administrative Expenses 72 000 24 000 96 000
Total $530 000 $660 000 $1 190 000
1. Using the information provided : a) Prepare an income statement for the year ended 30 June 2019 showing contribution margin.
b) What is the company’s 2019 break-even point in units?
c) What is the company’s 2019 break-even point in sales dollars?
