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1 Match the formulas to the appropriate CVP concept Contribution Margin Contribution Margin Ratio Break Even in units Break Even in dollars A. Fixed Costs
1 Match the formulas to the appropriate CVP concept Contribution Margin Contribution Margin Ratio Break Even in units Break Even in dollars A. Fixed Costs + Target Profit/Contribution margin B. Contribution Margin ratio sales dollar increase C. Current Sales - Break even Sales D. Sales Variable Costs - Fixed Costs E. Fixed Costs/contribution margin F. Fixed Costs + Target Profit/Contribution margin ratio Profit Formula Target Profit in Units Target Profit in Dollars Margin of Safety in dollars Margin of Safety in units Degree of operating leverage Analysis of an increase in Sales' impact to net income using Degree of Operating Leverage G. Degree of Operating leverage percent change in sales H. Contribution marginet income L Fixed Costs/contribution margin ratio J. Current units - Break even units K. Contribution Margin/Sales L. Sales - Variable Cost Analysis of an increase to Sales' impact to net income using contribution margin ratio QUESTION 2 Use the information below to calculate the margin of safety in units and sales dollars with the profit of 20.000 Hint: You must first calculate break even in units and dollars Sales Variable Cost Fixed Cost Target Profit A. The safety margin in Units 7,000 Sales Dollars 140,000 B. The safety margin in Units 2,000 Sales Dollars 40,000 The safety margin in Units 20,000 Sales Dollars 40,000 The safety margin in Units 7,000 Sales Dollars 20,000 20 10 50,000 20,000 QUESTION 3 Use the information below to calculate the units and sales dollars at the given target amount: Sales Variable Cost Fixed Cost Target Profit A. Units 7,000 B. OC. Sales Dollars 140,000 Units 7,000 Sales Dollars 140,000 Units 20,000 Sales Dollars 40,000 Units 7,000 Sales Dollars 20,000 20 10 50,000 20,000
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