Given you are constrained to your house due to Covid-19 you have decided to try and launch your o...
Given you are constrained to your house due to Covid-19 you have decided to try and launch your own small business.
Required (200 words):
a. Design a small business and document 1 key product. Name your business and product. List a maximum of 10 costs that will be involved in selling your product and explain why they are either a variable or fixed cost.
b. Estimate a reasonable selling price per unit for your product and estimate a value for each of the costs you listed in part a.
c. Workout your Breakeven point, showing all calculations.
d. Assume you require a profit of $25,000, calculate your new breakeven point, showing all calculations.
e. Define and calculate the ‘Margin of Safety’, in both units and dollars, assuming you sell 75,000 units. Ensure you include all calculations.
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ACCOUNTING
1 Answer
Sultan Ali
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