Acct225 - Integrated Accounting Systems

Assignment Task 

Background Information

Dynamadics Inc. is large, locally owned company operating in several regions within western Canada. Each region manufacture and sell apparel and accessories for both business and casual wear. The products lines include shoes, boots, sandals, purses, backpacks and computer bags. The company has an extensive distribution channel allowing for sales throughout the world.

Questions 

1. What is the annual total fixed cost based on the information provided?

2. What is the annual break-even sales in units assume that fixed costs are incurred uniformly throughout the year?

3. What Sales Revenues are required annually to break even? 

4. How many units need to be sold to achieve a target monthly profit of $85,000?

5. What profit will be realized if 75,000 units are sold during the year?

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