Finance School of management Example: PC1000 of Compusell Corp Sales 4,000 units at a price of S5,000 s20,000,000 per ye Fixed Costs: Lease payments S1, 500,000 per year Property taxes 200,000 Administration 600,00o Advertising 500000 Other 300000 Total fixed costs s3,10O,0oo Varia ble costs. Direct labor $2,000 per unit Materials 1,o00 Selling expenses 5o0 Other 250 variable cost per unit $3,750 per unit Total Variable Costs for 4, 000 units s15,000,000per ea重 Forecast of initial Capital outlay for PC1000 Purchase of Equipment s2,800,000 Working Capital s2200000 Total Capital Outlay s5,000,000 Depreciation s4o0,000 Corporate Income Taxes 940%10 Finance School of Management Example: PC1000 of Compusell Corp. Sales 4,000 units at a price of $5,000 $20,000,000 per year Fixed Costs: Lease payments $1,500,000 per year Property taxes 200,000 Administration 600,000 Advertising 500,000 Other 300,000 Total Fixed Costs $3,100,000 Variable Costs: Direct labor $2,000 per unit Materials 1,000 Selling expenses 500 Other 250 Variable cost per unit $3,750 per unit Total Variable Costs for 4,000 units $15,000,000 per year Forecast of Initial Capital Outlay for PC1000 Purchase of Equipment $2,800,000 Working Capital $2,200,000 Total Capital Outlay $5,000,000 Depreciation $400,000 Corporate Income Taxes @40%