1) Calculate target profit in units if sales price is $125, variable costs are $25, fixed costs are $1,000, and target profit is $30,000.

2) What type of income statement presentation should you use for breakeven and target profit analysis

1. 3Calculating target profit in units or dollars tells you what?
2. Which method would you use to find breakeven or target profit in dollars?
3. A company has an original selling prices of $50, original variable costs of $20, and original fixed costs of $15,000. The company revised their cost structure to have a $60 selling price, $20 variable costs, and $12,000 fixed costs. By how much will breakeven in units change for the updated fixed costs?
4. Which of the following is not an approach to calculating break even and target profit?

The Unit Contribution Margin Method

High Low Method

Contribution Margin Ratio Method

The Income Statement Method

5. If variable costs decrease what is the impact on contribution margin and volume?

Question 11 options:

Increase in contribution margin, decrease in volume

Increase in contribution margin, increase in volume

Decrease in contribution margin, increase in volume

Decrease in contribution margin, decrease in volume

6.Calculate breakeven in units if sales price is $100, variable costs are $50, and fixed costs are $2,500.