CVP Analysis

Van Otis Chocolates sells boxes of designer chocolates. They had the following information for the year:

Sales (6500 units)$81,250

Variable Expenses ..$52,000

Fixed Expenses.$49,500

Calculate the following (all count as 1 point each):

1. Calculate the UCM (unit contribution margin):

2. Calculate the CMR (contribution margin ratio):

3. Calculate the breakeven point in units:

4. Calculate the breakeven point in sales dollars:

5. Assume they want to earn a profit of $36,000. How many units do they have to sell?

6. What is the margin of safety in units?