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E - M: 4 - 4 1 Using sensitivity analysis ( Learning Objective 4 ) Mi Tierra Driving School charges $ 6 8 0 per
EM: Using sensitivity analysis Learning Objective
Mi Tierra Driving School charges $ per student to prepare and administer written and driving tests. Variable costs of $ per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $ include the training facility and fleet of cars.
Requirements
For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided:
a Breakeven point with no change in information.
b Decrease sales price to $ per student.
c Decrease variable costs to $ per student.
d Decrease fixed costs to $
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