100,000 Units Traditional Income Statement 1 Look at the Income Statement to the right Revenue L 500.000 Variable Fixed 1.046.000 Cast of Goods Sold L.151.000 105.000 Revenue is 100,000 units sold for $1,500,000 Look at this income statement - they lost $171,000 How many more would they have had to sell to break even (0 profit)? Gross Profit 349.000 Selling Expense Admin Expense 250.000 270.000 100.000 54.000 1.200.000 150.000 216.000 471.000 Net Loss -171.000 Create CVP Income Statement Below for on separate paper) 2 Look at the CVP template file on Canvas and see if you can put the given revenue and costs into a CVP income statement for This Company. The problem gives the variable and fixed amounts for each type of expense 3 Use the following formulas to find the Break even points Break even in Units - Fixed Costs / Unit Contribution Margin Break even in Ss - Fixed Costs / Contribution Margin% NOTE: The break even in units will not be a whole number you will have to round. Answers: Break even in Units Break even in SSS 4 If they increase the number of units sold by 10% (10,000) How much is net income or loss? 5 Company sells 2 products Products % of Business Contribution Margin Tablets MP3 Players 60% 40% 30% 35% Fixed Cost 120.000 a Break Even in SSSSS b 0 How much ss Tablets How Much SSMP-3 Players 0 c