Exercise 1.

Company X

Sales are 1 600 000 , variable costs 1 130 000 and fixed costs 320 000

Calculate contribution margin, break even point () and safety margin ()

Exercise 2.

Company XY

Sales are 6 800 000 and fixed costs are 2 400 000 .

Variable costs are 4 284 000 .

Calculate, what should company's sales be if profit should be 60 500 and you assume that contribution margin (%) is same as earlier?

Exercise 3.

Company XYZ produces product "XYZ". Variable costs are 60 % of sales.

Calculate how sales volume should change if the price would be a.) 5 % higher or b.) 5 % lower and contribution margin () remains the same.