10 Nov JB Ltd’s projected profit for 2015 is $550,000, ba
JB Ltd’s projected profit for 2015 is $550,000, based on a sales volume of 200,000 units. JB Ltd sells USB flash drive for $15 each. Variable costs consist of the $9 purchase price and a $1 shipping and handling cost. JB’s annual fixed costs are $450,000.REQUIRED:a) Calculate JB Ltd’s break-even point in unit sales and dollars.b) Calculate JB Ltd’s margin of safety in units.c) Calculate JB Ltd’s profit for 2015 if there is a 15% increase in projected unit sales.d) For 2015, management expects that the unit purchase price of the USB flash drive will increase by 10%. Calculate the sales revenue JB Ltd must generate for 2015 to maintain the current year’s profit ($550,000) if the selling price and fixed cost remain unchanged.
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