In: Accounting
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Number of Client $ |
Price Per Client $ |
Total $ |
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A) | Sale | 630 | 170 | 107100 |
B) | Variable Cost @ 70% of sales | 630 | 119 | -74970 |
C)= (A-B) | Contribution = 30% of Sales | 630 | 51 | 32130 |
D) | Fixed Cost | -22338 | ||
E ( C-D) | Net Benefit | 9792 |
1) | Contribution margin = Sales - variable Cost = $ 107,100 - $ 74,970 = $ 32,130 |
2) | Contribution Margin per unit = Sales - Variable Cost / Number
of Client = $ 107,100 -$ 74,970 / 630 = $119 |
3) | Contribution margin Ratio = Contribution / Sales *100 = $ 32,130 / $ 107,100 * 100 = 30% |
4) |
Break even sales = Fixed Cost /
Contribution margin = $ 22338 / 30% = $ 74,460 |
5) | Break even sales unit = Break even sales / Sale price per
unit = $ 74,460 / 170 = 438 units |
Prove: At 438 Unit of sale Net benfit = 0
Number of Client $ |
Price Per Client $ |
Total $ |
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A) | Sale | 438 | 170 | 74460 |
B) | Variable Cost @ 70% of sales | 438 | 119 | -52122 |
C)= (A-B) | Contribution = 30% of Sales | 438 | 51 | 22338 |
D) | Fixed Cost | -22338 | ||
E ( C-D) | Net Benefit | 0 |