Cost Volume Profit

Unit 2 Cost Volume Profit Read Chapter 18 https://www.principlesofaccounting.com/managerial-cost-accounting/ Problem 1 Bismark Industries makes a single product that sells for $34 per unit with variable costs being $21 per unit. A. The company has annual fixed costs are $364,000. 1 Calculate the contribution margin 2 Calculate the contribution margin ratio 3 Calculate the break even in units and in sales $ 4 Prepare a CVP Income Statement 1 Per Unit Units 1 Sales Variable Costs 2 Contribution Contribution margin Margin Ratio CM/sales 3 Break Even in Units Fixed Costs = # Contribution Margin per unit Break even in Sales Fixed Costs Contribution Margin ratioCVP Income Stmt Total # Units Sales $ Variable Costs $ Contribution Margin $ Fixed Costs $ Pre-tax income $ Senior Management At Bismark has determined to maintain certain financial ratios that they must earn a pre-tax income of $130.000 The company has annual fixed costs are $364,000. 1 Calculate the contribution margin 2 Calculate the contribution margin ratio 3 Calculate the break even in units and in sales $ 4 Prepare a CVP Income Statement 1 Per Unit Units 1 Sales Variable Costs 2 Contribution Contribution margin Margin Ratio CM/sales3 Break Even in Units Fixed Costs+ desired protE = 1:: Contribution Margin per unit Break even in Sales Fixed Co5t5+ desired protE = 5 \\:| Contribution Margin ratio ____________________________________________,________,________1._________ _______ Net imam S