Overhaulin'

I can not figure this out, please help!?

SCTC makes tony sets consisting of collectible trucks, vans and cars for retail market. The firm is developing a new toy set that includes a battery-powered tractor trailer, complete with cab and trailer; a sports car; and a motorcycle. Each set sells for $100 dollars. Major Components of SCTC’s annual fixed costs for the toy set. Each component includes the cost of purchases, depreciation, and operating expenses. SCTC’s Fixed Costs Land$44,500 Buildings$392,500 Manufacturing Machinery$572,000 Office Equipment$212,800 Utilities$30,500 Insurance$80,000 Total$1,333,000 SC TC’s variable costs Labor$15.00 Advertising$1.00 Shipping and receiving $5.00 Total$21.00 What is the fixed costs? What is the variable costs per unit? What is the contribution margin? What is the break-even point for this product? How many sets does SC TC have to sell before it can start turning a profit? How would increasing the sale price to $125 dollars affect the break-even point?

Public Comments

1. What's there to figure out - The answer is given - a) What is the fixed costs? Total $1,333,000 b) What is the variable costs per unit? Total $21.00 c) What is the contribution margin? 100 - 21 = $79 d) What is the break-even point for this product? How many sets does SC TC have to sell before it can start turning a profit? 1333000/79 = 16874 units e) How would increasing the sale price to $125 dollars affect the break-even point? 1333000/104 = 12818 units