8% of sales. In FY2020, UG sold 10,000 grinders at an average price of $125. Additional financial information appears below:
FY2020
Sales
$1,250,000
Cost of Goods Sold
$762,500
Gross Margin
$487,500
Selling, General, & Admin Expenses*
$350,000
*includes sales commissions. Other SG&A expenses do not vary with sales.
Operating Profit
$137,500
Product Cost Details
$/unit
Direct Materials
$20.00
Direct Labor
$15.25
Variable Overhead
$11.00
Fixed Overhead
$30.00
Total Product Cost
$76.25
What is Undergrounds FY2020 Total Contribution Margin?
1140000
What was FY2020 Undergrounds breakeven point in revenue $?
328947
UG plans on growing the business in 2021 to achieve an operating profit of 20%.
What is the revenue level in $ needed to achieve their 2021 operating profit goal?