Question
1. Complete a CVP Income Statement using the following data: Sales: $335,000; Total VC: $215,000; Total FC: $105,000 2. Complete a CVP Income Statement using
1. Complete a CVP Income Statement using the following data:
Sales: $335,000; Total VC: $215,000; Total FC: $105,000
2. Complete a CVP Income Statement using the following data:
Sales: $450,000; Total VC: $295,000; Total FC: $195,000
3. a. The following data pertains to Product A:
SP: $85.25; VC/unit: $43.80; Total FC: $110,000
b. The following data pertains to Product B:
SP: $125; VC/unit: $82; Total FC $89000
i)
What is the CM/ Unit for Product A? Product B?
4. In the problem above, what is the BE in Sales units for Product A? Product B?
5. Jordan Company sells a product, Product 125, which has the following data:
SP: $22.50; VC/unit: $10; Total FC: $85,000
a. What is the CM/unit?
b. What is the BE in units?
c. What is the BE in dollars?
6.Goldman Company has sales of $335,000 and total VC of $185,000
a. What is Goldman Companys CM?
b. If they sold 25,000 units, what is the CM/Unit?
c. What is the SP/Unit?
7. Aldredge Company sells Product Z for $25. VC/unit are $9.50 and FC are $54,250
a. What is the CM/unit?
b. What is the BE in units?
c. What is the CM Ratio?
d. Using the CM Ratio, what is the BE in dollars
8. Anderson, Inc. has the following data:
SP: $25.50; Units sold: 14,000; VC/Unit: $13.75; FC: $160,000
a. Prepare a CVP Income Statement
b. Prepare a CVP Income Statement showing a 20% increase in SP (with costs remaining
constant)
c. Prepare a CVP Income Statement showing a 10% increase in SP, an 8% increase in VC, and
a $20,000 decrease in FC.
d. Using the data in the bullets, what is the CM/Unit? CM Ratio?
e. Using the data in the bullets, what is the BE in Sales Units?
Accounting 2120
Chapter 18 - Assignment 2
Cost Volume Profit
9. a. Find the BE in Sales Units using the following data:
SP/Unit: $8.00; VC/Unit: $5.75; FC: $27,000
b. Once the company reaches BE, how much income will they have at:
15,000 units; 20,000 units; 35,000 units
10. Using the data in # 9 above, prepare a CVP Income Statement assuming 14,500 units are
sold.
11. Company XYZ produces product 110, which has a SP of $125, VC/Unit of $85, and FC of
$50,000.
a. What is the BE in Units (Use CM Method)?
b. What is the CM Ratio?
c. If XYZ has sales totaling $125,000, how much of it is used to cover FC and contribute to
NI?
12. Kramer Companys FC are $165,000. Their CM/Unit is $35.00.
a. If Kramer wants a NI of $62,500, how many units must they sell?
13. Morrison Companys information is as follows:
SP: $50; VC/Unit: $32; FC: $32,400
a. What is the CM/Unit?
b. What is the CM Ratio?
c. What is the BE in Sales Units? Sales dollars?
d. If Morrison would like a NI of $30,600, how many units must they sell?
14. Summit, Inc. expects sales of $465,000. If BE in sales dollars is $235,000:
a. What is their Margin of Safety? What does this mean?
b. What is their Margin of Safety Ratio? What does this mean?
15. Auriema Company sells Product 465, which has a SP of $65, VC/Unit of $45, and FC of
$85,000. If they expect to sell 6000 units of this product,
a. What is their Margin of Safety?
b. What is their Margin of Safety Ratio?
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