Cost-Volume-Profit (CVP) Analysis Fixed Costs: $75,000

• Variable Cost per Unit: $10
• Selling Price per Unit: $25

Requirements:

• Calculate the contribution margin per unit.
• Determine the break-even point in units.
• Create a CVP graph showing the break-even point.
• Analyze the effect of an increase in fixed costs by $10,000 on the break-even point.