1. Carbon Veiled Phosphorus makes and sells a single product. Information for their product is below:

Unit Selling Price $1,200.00

Unit Variable Cost 790.00

Total Fixed Cost $5,400,000

Expected sales 16,000 units

Required:

1. Use the CVP template to calculate the companys break-even point in both units and sales dollars as well as their expected income for next year at their planned sales volume. Ignore income taxes for this calculation.

1. If the companys variable cost of manufacturing increases by 5% next year and they increase their selling price by 5%, will their break-even point and expected income increase or decrease? Show calculations.

1. Explain in your own words how adding another product to their offerings would change their CVP calculations.