Ch21 H.W 1 Sami was just hired as a new accountant for a large manufacturing company. His supervisor is preparing a power point presentation about Cost - Volume - Profit analysis. He provided him with the following Information and asked him to do some parts as required below: Requirements: Calculate the following: 1-Contribution margin per unit. 2-Contribution margin ratio. 3- Variable cost ratio 4- Required units to achieve breakeven point. Total Sales in units Selling price per unit 40,000 units $ 20 Variable cost per unit $8 Total Fixed cost Target profit $300,000 $210,000 5- Required dollar sales to achieve breakeven point. 7- Required units to achieve target profit. Ch21 Formula sheet Operating Total Sales - Total Variable cost- Income(C.M Method) Total Fixed Cost Contribution margin per unit Total Contribution margin Contribution margin ratio Variable Cost ratio Breakeven point in units Breakeven point in $ Number of units to reach a target profit Dollars sales to reach a target profit Selling price per unit - Variable cost per unit Total Sales - Total Variable cost Contribution margin per unit/ Selling price per unit Variable cost per unit / Selling price per unit Total Fixed Cost / Contribution margin per unit Total Fixed Cost / Contribution margin ratio (Total Fixed Cost + target profit )/ Contribution margin per unit (Total Fixed Cost + target profit)/ Contribution margin ratio 8- Required dollars to achieve target profit. 10- Draw the Breakeven point graph. 9- Income statement (Using contribution margin method)