3. Cost-Volume-Profit (CVP) Relationships

1. Selling Price: You sell a case of cookies for $16

2. Breakeven point: Calculate the breakeven point. Be sure to include the fixed component of mixed cost in your fixed costs and the variable component in the variable cost. Show your breakeven in Sales units and in Sales Dollars

3. Profit Planning: Determine the number of units you must sell to make an annual pre-tax profit using 3 assumptions concerning your net income (profit), both in sales units and sales dollars.

1. Aggressive Profit ($4,125,000)

2. Conservative Profit ($1,750,000)

3. Average Profit ($3,589,200)