Cost-Volume-Profit Analysis Practice for Accounting II Class Here are questions to answer to practice what we learned in class about doing Cost-Volume-Profit Analysis. In th answer box provided in MyBusinessCourse, type the QUESTION NUMBER and then YOUR ANSWER. I will have to grade these manually. Let me know if you have any questions.Sharon Garvin 1.. Assume Company "A" has a product that has a sales price of $9 per unit, a variable cost of $6 per unit and total fixed costs per year of $120,000. What is the breakeven point IN UNITS? 2.. Use the same information as in Question \#1 ... What is the breakeven point IN DOLLARS? 3. Assume Company "B" has a product that has a sales price of $100 per unit, variable direct materials cost per unit of $10, variable direct labor cost per unit of $6, variable overhead cost per unit of $5, variable selling costs per unit of $2, total fixed manufacturing overhead for the year of $1,800,000 and total fixed expenses for the year of $240,500. What is the Breakeven Point IN UNITS? 4. Assume Company "C" has a product that has a sales price of $100 per unit, variable direct materials cost per unit of $14, variable direct labor cost per unit of $10, variable overhead cost per unit of $7, variable selling costs per unit of $3, total fixed manufacturing overhead for the year of $769,200 and total fixed expenses for the year of $300,000. What is the Breakeven Point IN DOLLARS? 5. Last year Company "D" sold 2,500 units of its only product for a sales price of $32 per unit. Total fixed costs/expenses per year were $14,000 and the variable cost/expense per unit was $20. 5a.. How much was the Contribution Margin Per Unit? 5b. How much was Breakeven in Units? 5c. How much was Breakeven in Dollars? 5d. How much was Margin of Safety in Units? 5e.. How much was Margin of Safety in Dollars? 5f.. How much Income did Company "D" make last year? (ignore income taxes) 6..Last year Company "E" sold 6,000 units of its only product for a price of $40 per unit. Total fixed costs/expenses per year were $120,000 and the contribution margin per unit was $30. 6a.. How much was the Variable Cost/Expense Per Unit? 6b.. How much Income did Company "E" make last year? (ignore income taxes) 6c. .Assuming this year's sales price, fixed costs/expenses and contribution margin per unit are the same as last year, how many units will Company "E" have to sell to generate a desired profit of $72,000 ? (ignore income taxes) 7..Company "F" has annual fixed costs of $225,000 and variable costs of 45% of sales revenue. Last year's revenues were $450,000. 7a.. How much was Breakeven in Dollars? 7b. How much was Margin of Safety in Dollars? 7 c..What dollar amount of Total Sales would be needed to generate a desired profit of $90,000? (ignore income taxes) 8..Company "G" had some Variable Costs/Expenses, some Fixed Costs/Expenses, and some Mixed Costs/Expenses. It used the High-Low Method to divide up the Mixed Costs into Variable and Fixed components. At last year's $800,000 Sales level, it had total Fixed Costs of $267,000 and total Variable Costs of $500,000. 8a.. How much was Breakeven in Dollars? 8b. If management makes a decision that increases fixed costs by $30,000 then what would the new Breakeven in Dollars be? 9..Company "H" only makes one product that it sells for $60 per unit. Fixed manufacturing costs (i.e. fixed overhead) per year are $37,600 and fixed expenses per year are $68,000. Variable manufacturing costs include $24 per unit for direct materials, $15 per unit for direct labor, $5 per unit for variable overhead. Variable expenses include $4 per unit sold. Company " H " sold 12,000 units of this product last year. Prepare a Contribution-Margin-Format Income Statement for the year. 10.. Use the same information in Question \#9 ... Management is considering making a change that will save the company $16,000 per year in fixed expenses (so the "new" fixed expenses per year will be $52,000 ) AND increase variable expense per unit by $3 per unit sold (so the "new" variable expenses per unit will be $7 per unit sold). Assuming Company "H" can still sell 12,000 units per year, should it make the change? (HINT: How much would the "new" income be? Would that be higher or lower than the income from your Income Statement in Question \#9?)