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Task 1: Best Buy plans to sell two different brands of...

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Task 1: Best Buy plans to sell two different brands of beds: Standard and Luxury. The company budgets the following: Standard Beds Luxury Beds Total Expected Sales (units) 4,000 2.000 6.000 Revenues, S600 and $2,400,000 $3,250,000 $5,650,000 | SI300 per unit Variable costs, $450 $1,800,000 $1,875,000 $3,675,000 | anid $750 per unit Contributiori margini, $600,000 $1,375,000 $1.975,000 SS0 and $550 per unit Fixed costs Operating income $700,000 $1.275,000 1. Calculate the breakeven point for Best Buy in terms of (a) the number of units sold and (b) revenues (round your answers to the nearest whole number). 2. In your own words, explain what "breakeven point" means. 3. In your own words, distinguish between "contribution margin" and "margin of safety" 4. How many methods are used in CVP analysis? Describe these in your own words. 5. Fill in the following blank: You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis. First you must understand break- even analysis. The definition of break-even point is where the total revenue total expenses

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