Prepare a cost of goods manufactured statement for

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1. Prepare a cost of goods manufactured statement for January 2014.
$
2. Prepare a cost of goods sold statement for January 2014.
ACCT1501 Practice Exam Questions & Solutions 2015S2 12 Part C (10 marks) Fit4U Ltd sells a single product, deluxe exercise bikes. The business profit calculations for last year were as follows: Sales revenue (1000 @ $1,800) $1,800,000 Less variable Costs (900,000) Contribution Margin 900,000 Less fixed costs (750,000) Profit $150,000 Fit4U wants to boost sales, and has decided to change the design of the exercise bikes. The pedals and bike seats will now be hot pink in colour (instead of black), and glow in the dark. This will increase the cost per exercise bike by $20. The price for these new bikes will be increased to $1,990 each. In addition, Fit4U will run a $50,000 advertising campaign to raise awareness of its product. The expectation is that the campaign will cause demand to increase to 1500 units, despite the increased price. 1) Using the above income statement format, calculate the expected profit for Fit4U Ltd next year. (5 marks)
2) How many bikes would Fit4U have to sell to earn as much profit next year as it did last year? (3 marks)
ACCT1501 Practice Exam Questions & Solutions 2015S2 13

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