Youthinc manufactures and sells a face wash just about one year ago. The monthly income...
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Youthinc manufactures and sells a face wash just about one year ago. The monthly income statement for June 2021 is as follow: (based on 250,000 unit sold) Revenue $2,250,000 Variable Costs: Manufacturing $750,000 Marketing 105,000 Total Variable Cost $855,000 Contribution Margin $1,395,000 Fixed Costs: Manufacturing $200,000 Marketing $260,000 Total Fixed Cost $460,000 Operating Income $935,000 Required: 1. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2021 (5%). 2. What is the margin of safety (in units) for June 2021? (5%) 3. If the company want to achieve target net income $800,000 and the tax rate is 30%, calculate how many units to be sold to achieve those targets? (5%) 4. Mr. Budi the owner estimates that if he can spend an additional $75,000 towards sales promotion, sales in unit may increase by 30%. What should Mr. Budi' decision be? (5%) 5. In the next month, the company want to launch new product, a night cream. The selling price for Night Cream is $15 and variable cost per unit to produce is $5. The total fixed cost to produce night cream is $525,000. The sales mix between face wash and night cream is 2:1. Compute break-even unit for each product (5%)
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