Chapter 19 Cost Volume Profit

1. Use the following information to answer items below:

Selling Price: $30; VC per unit: $12; FC: $270,000: Target Net Income:$126,000

Contribution Margin per unit:

Contribution Margin ratio:

BE in units:

BE in $$:

Units needed to reach TNI:

$$ needed to reach TNI:

Margin of Safety:

Margin of Safety ratio:

**Prove BE in units/$$ and TNI in units/$$ (Use a CVP income statement for

each)