Base CVP Scenario - Base ALL OTHER Calculations from this set of numbers! ...
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Accounting
Base CVP Scenario - Base ALL OTHER Calculations from this set of numbers! | ||||
| Total | Per unit | Ratio % |
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Sales (20,000 ) | $800,000 | $40.00 | 100.00% |
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Variable expenses | 500,000 | 25.00 | 62.50% |
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Contribution margin | 300,000 | $15.00 | 37.50% |
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Fixed expenses | 125,000 |
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Net operating income | $175,000 |
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(A) |
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Determine the break-even point in sales units | ||||
Break Even (Units) Formula = | ______________ |
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(B) |
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Sales volume increases by 60% and the selling price decreases by $6.00 per unit. | ||||
| Dollars | Per Unit | % Ratio |
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Sales (__________) |
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Variable expenses |
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Contribution margin |
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Fixed expenses |
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Net operating income |
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(C) |
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Selling price decreases by $8.00 per unit, fixed expenses increase by $90,000, | ||||
and the sales volume increases by 90%. | ||||
| Dollars | Per Unit | % Ratio |
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Sales (__________) |
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Variable expenses |
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Contribution margin |
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Fixed expenses |
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Net operating income |
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(D) |
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Selling price increases by 40%, variable expense increases by $5.00 per unit | ||||
Sales volume decreases by 10% | ||||
| Dollars | Per Unit | % Ratio |
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Sales (__________) |
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Variable expenses |
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Contribution margin |
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Fixed expenses |
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Net operating income |
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