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  • Classic Knitwear Excel Sheet

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    Tatsat Pandey
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    The document outlines the costs and contribution per unit for a clothing manufacturer over two years. Total fixed costs are $2,710,000 which includes advertising expenses of $510,000, retail displays of $1,000,000, and hiring sales reps of $1,200,000. The contribution per unit is $4.9056, calculated from the manufacturer's selling price per shirt of $17.87 minus costs of goods sold of $10.82, expected advertising allowances of $0.3574, invoice allowances of $0.8935, and royalty payments of $0.8935. To break even, the required sales volume is 552,429 units based on total fixed costs divided

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    MKTG

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    The document outlines the costs and contribution per unit for a clothing manufacturer over two years. Total fixed costs are $2,710,000 which includes advertising expenses of $510,000, retail displays of $1,000,000, and hiring sales reps of $1,200,000. The contribution per unit is $4.9056, calculated from the manufacturer's selling price per shirt of $17.87 minus costs of goods sold of $10.82, expected advertising allowances of $0.3574, invoice allowances of $0.8935, and royalty payments of $0.8935. To break even, the required sales volume is 552,429 units based on total fixed costs divided

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    148 views2 pages

    Classic Knitwear Excel Sheet

    Uploaded by

    Tatsat Pandey
    The document outlines the costs and contribution per unit for a clothing manufacturer over two years. Total fixed costs are $2,710,000 which includes advertising expenses of $510,000, retail displays of $1,000,000, and hiring sales reps of $1,200,000. The contribution per unit is $4.9056, calculated from the manufacturer's selling price per shirt of $17.87 minus costs of goods sold of $10.82, expected advertising allowances of $0.3574, invoice allowances of $0.8935, and royalty payments of $0.8935. To break even, the required sales volume is 552,429 units based on total fixed costs divided

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Break even Analysis

    Total Fixed Cost for two years


    Expense
    Advertising expense
    Retail Displays
    sales reps to be hired
    Total Fixed Cost for marketing
    Contribution per Unit
    Manufacturer's Selling Price/shirt
    Less: COGS
    less: Advertising allowances (expected that
    20% of retailers placing order would qualify for the 10% ad allowance)
    Less:Invoice Allowances (5% of selling price)
    Less: Royalty Payments
    Contribution Margin/Shirt
    Break Even Volume = Total Fixed Costs/Contribution
    Break even volume

    552429.8761

    in $
    Reference
    510000 (Page 6,pararaph 2)
    1000000 (Page 5,pararaph 4)
    1200000 (Page 6,pararaph 1)
    2710000

    17.87 (Exhibit 4 - footnote)


    10.82 (Exhibit 4 - footnote)
    0.3574
    (Page 6,pararaph 3)
    0.8935 (Page 6,pararaph 3)
    0.8935 (Exhibit 3)
    4.9056

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