HW 5 chap 6 CVP an... Non enregistr pour le mo.. HW 5: chap 6: CVP analysis You have the following information concerning a company: Activity level (0) = 10 000 units (USP)Unit Sale Price = 3$ (UVC) Per unit variable cost = 1$ (FC) Total Fixed costs = 10 000$ Profit = (10 000*3)-(1* 10 000)-10000=10 000$ Assume the manager is considering increasing the unit sale price to 5$ with no effect on unit variable cost and total fixed costs Required: 1/ calculate the contribution margin ratio for this new situation using the following formula: CM ratio = (USP-UVC)/ USP 2/ calculate the sales revenues required for this new situation to earn at least the same profit of 10 000$ (Target Profit -TP) using the following formula: SR = (FC +TP)/CM ratio