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CVP Analysis Please show work. Which of the following is NOT an assumption of Cost-Volume-Profit analysis? A. Inventory levels will change as production levels vary.

CVP Analysis

Please show work.

Which of the following is NOT an assumption of Cost-Volume-Profit analysis?

A. Inventory levels will change as production levels vary.

B. Managers can classify each cost as either variable or fixed, and mixed costs can be broken down into their variable or fixed component.

C. Revenues are linear throughout the relevant range of volume.

D. A change in volume is the only factor that affects costs.

If the sales price is $20 per unit, the variable cost is $12 per unit, total fixed costs is $12,000, and 15,000 units are produced, the contribution margin per unit is:

A. $20.

B. $12.

C. $9.

D. $8.

If the sales price is $60 per unit, the variable cost is $10 per unit, total fixed costs is $60,000, and 12,000 units are produced, the breakeven in units is:

A. 1,200.

B. 1,000.

C. 240.

D. 200.

If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is $24,000, the contribution margin ratio is:

A. 80%.

B. 60%.

C 40%.

D. 20%.

If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is $24,000, the breakeven in sales dollars is:

A. $15,000.

B. $24,000.

C. $36,000.

D. $60,000.

If the sales price is $60 per unit, the variable cost is $36 per unit, total fixed costs is $50,000, how many units need to be sold if the desired profit is $100,000?

A. 1,000 units

B. 2,500 units

C. 4,100 units

D. 6,250 units

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