Cost-Volume-Profit (CVP) Analysis (Manufacturing Company)

Item	Amount
Selling price	$80/unit
Variable cost	$40/unit
Fixed costs	$300,000
Expected sales	10,000 units

• Requirements:
  • Calculate the contribution margin per unit and total contribution margin.
  • Determine the break-even point in units and sales dollars.
  • Discuss how changes in fixed costs affect the break-even point.
  • Recommend pricing strategies to increase profitability.