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The income statement for ABC's 2012 fiscal year is presented below. ABC manufactures one type of street lamp used on municipal roads. Sales 2,400,000 Variable cost of goods sold 1,680,000 Variable sales commissions 120,000 Contribution margin 600,000 Selling expense 105,000 Sales commissions expense 48,000 Administrative expense 212,000 Net income 235,000 Variable costs per unit are £6. Complete the following: Please note: Round all answers to two decimal places.
1. Calculate break-even in pounds. 2. Calculate break-even in units. 3. Calculate break-even in pounds if the sales price increases by 10% and fixed costs increase b y £12,000. 4. Calculate break-even in pounds if total sales increases by 10% and fixed costs increase by 10%. 5. Calculate sales (in pounds) to achieve £600,000 after tax. (Note: The tax rate is 40%.)
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