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  3. for this project, you will create a scenario for a

For this project, you will create a scenario for a business or other organization and...

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Question

Accounting

For this project, you will create a scenario for a business or other organization and use CVP analysis to show the following:

1.Breakeven in units

2.Breakeven in dollars

3.Target sales in units for achieving a $20,000 target NI

4.Target sales in dollars for achieving a $20,000 target NI

5.Calculate what the new sales price should be in order to achieve a $10,000 NI using the breakeven in units (#1 above) for sales volume (Q)

6.Calculate what the variable cost per unit would need to be in order to achieve a $10,000 NI using the breakeven in units (#1 above) for sales volume (Q)

Requirements:

A.Define each CVP variable for your scenario:

SP =

VC =

FC =

B.Calculate:

CM per unit =

CM ratio =

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