Question
Alpha Manufacturing Scenario: Cost-Volume-Profit (CVP) Analysis Data: Selling Price per Unit: $50 Variable Cost per Unit: $30 Fixed Costs: $100,000 Expected Sales Volume: 10,000 units
- Alpha Manufacturing
Scenario: Cost-Volume-Profit (CVP) Analysis
Data:
- Selling Price per Unit: $50
- Variable Cost per Unit: $30
- Fixed Costs: $100,000
- Expected Sales Volume: 10,000 units
Requirements: Calculate Alpha Manufacturing's breakeven point in units and sales revenue. Determine the contribution margin per unit and the contribution margin ratio. Perform sensitivity analysis assuming a 20% increase in variable costs. Discuss the implications of CVP analysis on pricing decisions for Alpha Manufacturing.
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ISE Introduction To Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
8th Edition
1260091759, 9781260091755
