Accounting 2120 Ch. 20 Cost Volume Profit Analysis Activity 1 1 1. Aldredge Company sells Product Z for $35. VC/unit are $19.25 and FC are $228,375 a. What is the CM/unit? b. What is the BE in units? c. What is the CM Ratio? d. Using the CM Ratio, what is the BE in dollars 2. a. Find the BE in Sales Units using the following data: SP/Unit: $48.00; VC/Unit: $14.40; FC: $453,600 b. How much net income will the company have with the following sales level? 18,000 units; 26,000 units; 38,000 units 3. Morrison Company's information is as follows: SP: $140; VC/Unit: $91; FC: $588,000 a. What is the CM/Unit? b. What is the CM Ratio? c. What is the BE in Sales Units? Sales dollars? d. If Morrison would like a NI of $392,000, how many units must they sell? 4. Summit, Inc. expects sales of $465,000. If BE in sales dollars is $235,000: What is their Margin of Safety? What does this mean? b. What is their Margin of Safety Ratio? What does this mean? a