COST - VOLUME - PROFIT ANALYSIS

Protest Industries produces only one product. The following revenues and cost have been estimated for the forthcoming month:

Selling price, $ 117 per unit (SP)

Variable cost, $ 78 per unit (VC)

Fixed Cost, $ 78,000

The managers of the firm wish to know the following:

1.Calculate contribution margin per unit

2.Calculate contribution margin ratio.

3.BEP in units and Dollars

4.Calculate margin of safety if actual sales are 6,000 units

5.Arrange a Break-even chart using above information

Calculate how many units must be sold to get a profit of $156,000