CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case).

51. CVP and Sensitivity Analysis (Single Product) (continued) d. The target profit point in sales dollars is calculated as: Target profit 240000 in sales dollars $380,000 $30 $6) 140000 + $1 $30 $1 $475,000 e. The margin of safety in units Projected sales in units) - Break-even sales (in units) units units (from part a) units Margin of safety in sales dollars Projected sales in sales $) - Break-even sales in sales $) units per unit) (from parte) 51. CVP and Sensitivity Analysis (Single Product) (continued) f. Contribution margin income statement for base case: Sales Variable costs Contribution margin Fixed costs Operating profit units) units) & Start by calculating the new sales price: New sales price % decrease Then, prepare a new contribution income statement reflecting the change: Sales Variable costs Contribution margin Fixed costs Operating loss (S 60,000) units) units) h. Start by calculating the new unit variable cost: New unit variable cost % increase units) units) Then, prepare a new contribution income statement reflecting the change: Sales Variable costs Contribution margin Fixed costs Operating profit