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Data Inputs: Unit sales Selling price per unit Variable expense per unit Total fixed expenses $ $ $ 40,000 12.50 7.50 180,000 % Contribution Format
Data Inputs: Unit sales Selling price per unit Variable expense per unit Total fixed expenses $ $ $ 40,000 12.50 7.50 180,000 % Contribution Format Income Statement Total Per Unit $ 500,000 $ 12.50 300,000 7.50 200,000 $ 5.00 100% Sales Variable expenses Contribution margin Margin of Safety Actual sales (a) Break-even sales (b) Margin of safety in dollars (a) (b) Margin of safety percentage $ $ $ 500,000 450,000 50,000 60% 40% 10.00% Fixed expenses 180,000 Net operating income $ 20,000 Net profit margin percentage 4.00% Profit Graph Information Profit Data Points 50,000 CVP Graph Information Sales Dollars Fixed Expenses Total Expenses Data Points 50,000 a. Calculate the unit sales required to attain a margin of safety percentage of 15%. b. Restore the original values in your Excel file. Calculate the unit sales required to attain an 8% profit margin
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