ASS AOC 320P.docx Google x nekBWZyq0AK15mor/view Open with Google Docs CVP question ABC company has provided the following information about the company Sales = $210000 PRODUCTION Variable cost [manufacturing] = $ 43000 Fored cost [manufacturing 1=$75000 SELLING & ADMIN Variable cost = $25000 Fixed cost = $32000 Units produced = 1500 Production capacity - 2000 units REQUIRED 1. Calculate CM per unit, CMR 2 Determine the breakeven point in units and 3. Calculate margin of safety in S&% 4. The sales manager believes that the company could increase sales by 700 units if advertising is Increased by $15000. Should the company increase advertising expenses? $. Determine the sales revenue necessary to generate before tax profit of $48000 6. Determine sales revenue necessary to generate after tax profit of 527000. f tax ratein 30% 7. Calculate degree of leverage (DOL) and if sales increases by 20% what will be the net income of this company fuse original data in the beginnint) Phou 1 1 1 + ofte