1. Company: Alpha Industries

Scenario: Cost-Volume-Profit Analysis

Data:

• Fixed Costs: $400,000
• Variable Cost per Unit: $20
• Selling Price per Unit: $50
• Units Sold: 15,000

Requirements:

1. Calculate the contribution margin per unit.
2. Determine the break-even point in units.
3. Calculate the total profit.
4. Analyze the impact of a 10% increase in variable costs on the break-even point.
5. Suggest ways to improve the contribution margin.