1 CVP Sensitivity Analysis (Single Product) Bridgeport Company has monthly fixed costs totaling $200,000 and variable costs of $40 per unit. Each unit of product is sold for $50. Bridgeport expects to sell 30,000 units each month (this is 2 the base case) 4 Required: For each of the independent situations in requirements b through d, assume that the number of 5 units sold remains at 30,000 Prepare a contribution margin income statement for the base case Refer to the base case. What would the operating profit be if the unit sales price increases 10 percent? Refer to the base case. What would the operating profit be if the unit variable cost decreases 20 percent? Refer to the base case. What would the operating profit be if total fixed costs decrease 20 percent? 6 a 10 11 Sales price Variable cost Fixed Costs 12 Base Case Increase Decrease Decrease 13 10% -20% -20% 14 Sales Price per Unit Variable cost per unit 15 16 Monthly Fixed cost Volume of sales in units 17 18 Jx D Refer to the base case. What would the operating profit be if the unit variable cost decreas Refer to the base case. What would the operating profit be if total fixed costs decrease 20 Fixed Costs Variable cost Sales price Decrease Decrease Increase Base Case -20% -20% 10% Sales Price per Unit Variable cost per unit Monthly Fixed cost Volume of sales in units Sales Variable Costs Contribution Margin Fixed Costs Operating Profit Dollar Change in profit from base case Change in profit from base case 6.27. 200