Product 1: "Air-bag"- a clear bag that is used for travel that will sell for $6. Product 2: ...

Question

Product 1: "Air-bag"- a clear bag that is used for travel that will sell for $6.
Product 2: "Air-bag clip"- a clip for the air-bag that attaches to luggage sell for $15.
Costs:     Trade show booths = $250.
Employee work contract $650 per month PLUS a commission equal to 2% of revenue.
Products come from a supplier in Mexico:
· Air bag cost $1 each
· Air bag clip cost $5 each.
Shipping and handling:    Air bag cost $1 each
Air bag clip cost $3
The shipping and handling costs are not paid by the customer.
One-month sales assumptions:     400 Air bag
250 Air bag clip
Financial goal = Operating income of $15,000 per month.
Growth rate: 2% a month.

final-4-ujw3qifb.docx cvp-excel-projectspring2019-jafecysl.xlsx

Kiran · Accepted Answer

Starting file
		ASSUMPTIONS			Product #1			COMPANY NAME
		Product #1:			Unit CM	$   3.88		Pro Forma Contribution Margin Income Statement
		Sales price per unit	6.00		CM %	64.67%		For the month ending ___________________________
		Variable costs per unit:			Breakeven point:
		Product cost	1.00		-in units	232			Product #1	Product #2	Total
		 Commission to employee	0.12		-in sales revenue	$   1,391.75		Monthly volume	400	250	650
		   Shipping and handling	1.00					Sales price per unit	6.00	15.00
		Total variable cost per unit	2.12		Target profit volume:			Sales revenue	2400	3750	6150
					-in units	4,098		Less: Variable costs	848	2075	2923
		Monthly volume	400		-in sales revenue	24,

Product 1: "Air-bag"- a clear bag that is used for travel that will sell for $6. Product 2: "Air-bag clip"- a clip for the air-bag that attaches to luggage sell for $15. Costs: Trade show booths =...

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