100,000 Units Traditional Income Statement Look at the Income Statement to the right Revenue is 100,000 units sold for $1,500,000 Look at this income statement - they lost $171,000 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 1 Use the following formulas to find the Break even points Break even in Units = Fixed Costs / Unit Contribution Margin Break even in $$ = Fixed Costs / Contribution Margin % NOTE: The break even in units will be a whole number you will not have to round. Answers: Break even in Units Break even in $$$ 2 If they increase the number of units sold by 10% (10,000) How much is net income or loss? 3 Company sells 2 products Products Revenue $ 1,500,000.00 Variable Cost of Goods Sold $ 1,151,000.00 $ Fixed 1,046,000 $ 105,000 Gross Profit $ 349,000.00 Selling Expense Admin Expense $ 250,000.00 $ 100,000 $ 150,000 $ 270,000.00 $ $ 54,000 $ 1,200,000 $ 216,000 471,000 Net Loss $ (171,000.00) Create CVP Income Statement Below (or on separate paper) % of Business Contribution Margin Tablets 60% 30% MP 3 Players 40% 35% Fixed Cost $ 120,000 Break Even in $$$$$ b How much $$ Tablets How Much $$MP-3 Players 199