A company sells plastic containers for the 5 weeks preceding Forth of July. Its sales is budgeted as
$50,000 and the expenses expected as follows:
Cost of fireworks
The actual sales were $49,800, approximately equal to the budget. The company spent $21,000 for fireworks,
$13,000 for labor, and $4,600 for other cost.
Calculate the budgeted profit and the actual profit.
Prepare a performance report.
The following each problem is unrelated to the others.
Selling price per unit is $25, total fixed cost $6,000, variable cost per unit $18.
Find the brake-even point in units and sales amount.
Given: Sales is $32,000, variable cost is $20,000, fixed cost $3,500, and net income $8,500.
Find the brake-even sales.
Given: Selling price per unit, $30; total fixed cost, $70,000; variable cost per unit $20. Assume that variable
cost increased by 5% per unit, and the total fixed cost increased by 10%.