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CVP ANALYSIS Bond Inc. sells one product. In December 2018. Bond sold 2.500 units which resulted in the following results: Sales Variable costs Contribution margin
CVP ANALYSIS Bond Inc. sells one product. In December 2018. Bond sold 2.500 units which resulted in the following results: Sales Variable costs Contribution margin Fixed expenses per month Profit $100,000 $60,000 $40,000 $10,000 $30,000 In January 2019, Bond increased its monthly marketing expenditures by $5,000 and raised its sales price by $9 per unit. Variable cost per unit remained the same. Bond's CFO (a Stanford grad) is confused and unsure of the strategy's possible outcomes. Help him by answering the following questions: What was the Contribution Margin per unit in December (before the changes)? (3pts) Compared to December, how many more or fewer units must be sold in January to break even? (4pts) Compared to December, how many more or fewer units must be sold in January to maintain the same level of profit? (4pts) How many more or fewer units must be sold in January to double December's profit? (4pts)
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