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1:28 * ... twll 15% 2.0 The following is the CVP diagram for HapPo Toy Store, a toy shop that sells Hippo Toys. Cost-Volume-Profit Analysis
1:28 * ... twll 15% 2.0 The following is the CVP diagram for HapPo Toy Store, a toy shop that sells Hippo Toys. Cost-Volume-Profit Analysis for Happo Toy Store Page 7 $ 35,000.00 $ 20,000.00 $ 25,000.00 $ 20,000.00 Revenue/Costs $ 15,000.00 $10,000.00 $5,000.00 FC Units 0 50 100 150 200 250 300 REQUIRED: Study the above information and answer the following questions. a. Show the breakeven point on the graph above. b. State the dollar amount of sales is required to achieve breakeven. c. If the business sold 200 units of toys. Show the Margin of Safety on the graph above. d. Calculate the contribution margin at breakeven point. e. Explain why the Fixed Cost curve shows a straight line. f. Calculate the variable cost per unit. g. Show the Total Variable Cost curve on the diagram above. h. Calculate the contribution margin per unit. i. State the units of sales are required for achieving $10,000 profit. i Calculate the sales amount (in dollar) is required for achieving $25,000 profit. k. Explain why the Total Cost curve starts from $5,000. IENG 2001 - Engineering Economics Revision 2018/2018 TI
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