Essay heading: 4 Planning & Budgeting

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Business

 

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November 12, 1997

 

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3 / 607

 

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At $12 a piece, our new Sales price is $240k, and our new variable cost is $8k. As we saw in question 1, we now know that the contribution margin is ($240k - $8k =) $232k. If we subtract from that the fixed cost (which haven't changed since question 3, $120k), we get a total net income of $112k (please see calculations below): units 20,000...
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If we subtract from that the fixed cost (which haven't changed since question 3, $120k), we get a total net income of $112k (please see calculations below): units 20,000.00 sales $240,000.00 = 20k cuts * $12 each variable cost $ 8,000.00 = 20k cuts * $0.40 for shampoo cont margin $232,000.00 = $240k sales - $8k variable costs fixed cost $120,000...
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