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There is not a set number to reach. It just goes by sales that week the chart is published. I would say a minimum of 2,000 albums a week would get you on the list
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∙ 12y ago
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Cost classification and target profit Bart's Woodwork Company makes and sells wooden shelves Bart's carpenters make the shelves in the company's rented building Bart has a separate office at anot?
{| |- | 2-33 (a) Cost of goods sold: Carpenter labor to make shelves $ 600,000 Wood to make the shelves $ 450,000 Depreciation on carpentry equipment $ 50,000 Miscellaneous fixed manufacturing overhead (support) $ 150,000 Rent for the building where the shelves are made $ 300,000 Miscellaneous variable manufacturing overhead (support) $ 350,000 Total $1,900,000 Selling and Administrative Costs Sales staff salaries $ 80,000 Office and showroom rental expenses $ 150,000 Advertising $ 200,000 Sales commissions based on number of units sold $ 180,000 Depreciation for office equipment $ 10,000 Total $ 620,000 Sales $3,500,000 Cost of goods sold $1,900,000 Gross margin $1,600,000 Selling and administrative expenses $ 620,000 Net income before taxes, etc. $ 980,000 (b) The following items are variable costs: Carpenter labor to make shelves $ 600,000 Wood to make the shelves $ 450,000 Sales commissions based on number of units sold $ 180,000 Miscellaneous variable manufacturing overhead (support) $ 350,000 Total variable costs $1,580,000 The variable costs per unit are: Sales $ 3,500,000 Total variable costs $ 1,580,000 % of sales 45.1429% Unit sale price $ 70.00 Variable cost per unit $ 31.60 Unit contribution margin $ 38.40 The following items are fixed costs: Sales staff salaries $ 80,000 Office and showroom rental expenses $ 150,000 Depreciation on carpentry equipment $ 50,000 Advertising $ 200,000 Miscellaneous fixed manufacturing overhead (support) $ 150,000 Rent for the building where the shelves are made $ 300,000 Depreciation for office equipment $ 10,000 Total fixed costs $ 940,000 The number of units sold to earn a pre-tax profit of $500,000 is Unit contributin margin $ 38.40 Fixed costs $ 940,000 Pre-tax profit target $ 500,000 Breakeven 37,500 |}
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