RST Retailers Inc.Scenario: Perform CVP AnalysisData:Sales Price per Unit: $50Variable Cost per Unit: $30Fixed Costs: $100,000Requirements:Calculate the Contribution Margin...
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Accounting
RST Retailers Inc.
Scenario: Perform CVP Analysis
Data:
- Sales Price per Unit: $50
- Variable Cost per Unit: $30
- Fixed Costs: $100,000
Requirements:
- Calculate the Contribution Margin per unit and Contribution Margin Ratio.
- Determine the Breakeven Point in units and sales dollars.
- Perform sensitivity analysis for a 10% increase in sales volume.
- Discuss the implications of CVP analysis on pricing and profitability for RST Retailers Inc.
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