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create a scenario for a business or other organization and use CVP analysis to show the following: 1. Breakeven in units 2. Breakeven in dollars
create a scenario for a business or other organization and use CVP analysis to show the following:
1. Breakeven in units 2. Breakeven in dollars 3. Target sales in units for achieving a $50,000 target NI 4. Target sales in dollars for achieving a $50,000 target NI 5. You realize that your scenarios actual capacity is limited to its breakeven number of units (BEu, as calculated in #1 above). Calculate what the new sales price (SP) should be in order to achieve a $10,000 NI using the BEu (#1 above) for sales volume (Q). 6. Same as #5, except this time calculate what the new variable cost per unit (VC) would need to be in order to achieve a $10,000 NI using the BEu (#1 above) for sales volume (Q).
Requirements:
A. Define each CVP variable for your scenario: SP =
VC =
FC =
B. Calculate:
CM per unit =
CM ratio =
C. Calculate #1 6 above, showing all calculations
create a scenario for a business or other organization and use CVP analysis to show the following:
1. Breakeven in units
2. Breakeven in dollars
3. Target sales in units for achieving a $50,000 target NI
4. Target sales in dollars for achieving a $50,000 target NI
5. You realize that your scenarios actual capacity is limited to its breakeven number of units (BEu, as calculated in #1 above). Calculate what the new sales price (SP) should be in order to achieve a $10,000 NI using the BEu (#1 above) for sales volume (Q).
6. Same as #5, except this time calculate what the new variable cost per unit (VC) would need to be in order to achieve a $10,000 NI using the BEu (#1 above) for sales volume (Q).
Requirements:
A. Define each CVP variable for your scenario:
SP =
VC =
FC =
B. Calculate:
CM per unit =
CM ratio =
C. Calculate #1 6 above, showing all calculations
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