Answer the questions below on cost, volume profit.

A. Fill out the chart

	If the item changes as indicated what happens to the break-even of the company	BREAK-EVEN ANSWER UP OR DOWN BELOW
1.	Sales price up
2.	Variable costs up
3.	Advertising costs up
4.	Fixed costs down
5.	Contribution margin down

Short case: A company has sales of $500,000, fixed costs of $200,000 and variable costs of $300,000. The company wants a target profit of $100,000. The selling price per unit is $50 and the variable cost per unit is $30. How many units does the company have to sell to earn a profit of $100,000? Break-even sales are $500,000 and 10,000 units.

B. Number of units to sell at the target profit:

$200,000 + $100,000 = 6,000 units

$50

C. Proof fill out the blanks in the chart

	Insert Dollars	Percentage of sales
Sales		100%
Variable Costs		60%
Contribution Margin		40%
Fixed Costs	($200,000)
Operating Profit	$100,000

D. If the company achieves the target profits of $100,000, what is the companys margin of safety of its sales?

$100,000 - $500,000