Homework Chap 6 Look at the Income Statement to the right Revenue is 100,000 units sold for $1,500,000 Look at this income statement - they lost $171,000 Look at the CVP template le on Canvas and see if you can put the given revenue and costs into a CVP income statement for This Company. The problem gives the variable and xed amounts for each type of expense 1 Use the following formulas to mm the Break even points Break even in Units = Fixed Costs 1 Unit Contribution Margin Break even in $5 = Fixed Costs f Contribution Margin % NOTE: The break even in units will be a whole number you will not have to round. Answers: Break even in Units Break even in 05$ 2 If they increase the number of units sold by 10% (10,000) How much is net income or loss? 3 Company sells 2 products 100,000 Units Traditional Income Statement Revenue 1,500,000 Variable Cost of Goods Sold 1,151,000' 1,046,000 Gross Prot 349,000 Selling Expense 250,000 100,000 Admin Expense 270,000 54,000 1,200,000 Net Loss 471,000 Create CV P Income Statement Below {or on separate paper) Products % of Business Contribution Margin Tablets 60% 30% MP 3 Players 40% 35% Fixed Cost 120,000 a Break Even in $$$$$ E b How much $5 Tablets 0 c How Much SSMP-3 Players 0 Fixed 105,000 150,000 216,000 47 1,000