Just Organic Juices sells bottles of freshly squeezed organic juice to small boutique shops throughout...
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Accounting
Just Organic Juices sells bottles of freshly squeezed organic juice to small boutique shops throughout Melbourne. Its latest income statement for the last 12 months is as follows:-
Just Organic Juices
Income Statement
Sales (155 000 bottles @ $5)
775 000
Cost of goods sold (155 000 bottles @ $3.50)*
542 500
Gross Profit
232,500
Less: Other expenses
Advertising
10 000
Managers salary
65 000
Occupancy and administration
20 000
95 000#
Net Profit
137 500
* variable costs
# fixed costs
Required:
(a) Calculate the contribution margin per juice bottle.
(b) Calculate the number of juice bottles to break even in both units and sales dollars
(c) The company expects to make a net profit of $180 000 in the coming year.
(i) How many units will be sold at this level of activity?
(ii) What will the sales in dollars be at this level of activity?
(iii) What will the gross profit be at this level of activity
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