Exercise 11 CVT analysis Big Beef BBQ Ltd sells a single product, a gas barbecue. The barbecue sells for $960 per unit. Annual fixed costs are $1 536 000, and the contribution margin rate is 40%. Required A What are the variable costs per unit? B How many units must the company sell to break even? C. What is the break-even point in sales dollars? D. If the company wants to earn a before-tax profit of $768 000, how many units must be sold? What sales dollar level is required? What is the company's margin of safety at this sales level? E. If the company wants to cam a before-tax profit of 20% of sales, how many units must be sold? What are the sales dollars? F. Prepare a CVP chart for the company. A Variable costs per unit -0,40)5576 B Becakeview sales in its 5055576551534.000 5354551 536000 S4000 hurtiges Beak-even sales in dollar 4000 haguess 100 DU to sell to compre-tax profit of 78000 $960$$76S+S15560005768000 $384552304000 S-6000 Sales S'w 6000 SWO-550000 Margin of safety Un sale 6001 - 4000 - 2000 Diales 550.000 840000 SI 930 000 E 8 V + + + Target Hofit 59-55765+5160002' 1928 - 31 536.000 S-000 8000 5040-7680.000 CVP Chart A. Variable costs per unit 06-040-5576 B. Break-even sales in its SWS-5576531 536 000 5364 SS1536000 S4000burbeques C. Becak-evc sales in dollar 4000 babeques 5960 $3840 000 D. Units to sell to cami pretas profit of S768000 5960 S - $576 S+SI 536 000 $768000 $384 S$2304000 S-6000 Sales S's 6000' 5960 - $760.000 Margin of safety: Unit sales 6000-4000 - 2000 Dollar sales $570000 83 840000 $1 920 000 E.SVC+FC+Target profit $905-55765+1 636 00002sm's 1928 - 31 536000 S-8000 8000 5900 57 650 000 G CVP Chart (Break-even should be $3.84M and Fixed costs $1.536M)