1. 5 points Quest (CVP relation - main version) Use the t ing contribution margin statement for 20x9: 20x9 Sales volume t s) 100 Revenue $5,500 Variable costs 2,500 Contribution margin $ 100 Fixed costs $1,800 Profit $1,200 Required: a) How much is the price per unit, unit variable cost and unit contribution margin? price unit VC= unit CM b) Write down the CVP relation: profit as a function of sales volume in units (fill in the missing numbers in an equation like: Profit = 2 Volume - 50). Profit = 1 Volume - c) If sales volume increases by 20% (from 100 to 120), how much is the $ change in profits? d) What is the sales volume required to achieve target profit of $2,100? e) How much is the breakeven volume? Breakeven revenue? - Type here to search OOOOOO 2 will f) How much is the margin safety (at current sales volume of 100 units)? (enter percentages as a fraction of 1, i.e., enter 23.47% as 0.2347) 9) Based on the margin of safety computed in (f), will you start making a loss if sales drop by 30%? (enter 1 for yes, 2 for no) h) How much is the operating leverage (at current sales volume of 100 units)? (enter percentages as a fraction of 1, i.e., enter 23.47% as 0.2347) If fixed costs increase, will it increase or decrease the operating risk? (enter 1=increase, 2=decrease) Submit Answer Practice Another Version Type here to search Ft * e N N W