- I - - Merge o Center fx E H HOWARD INDUSTRIES BREAKEVEN SALES PERCENT PERCENT VARIABLE FIXED 64000 UNITS SOLD VARIABLE FIXED COSTS COSTS SALES COST OF GOODS SOLD SELLING EXPENSES ADMINISTRATIVE EXPENSES OPERATING INCOME 64000 UNITS 2,880,000.00 (1,400,000.00) (400,000.00) (387,500.00) 692,500.00 0.75 0.6 0.8 0.25 0.4 0.2 MANAGEMENT IS CONSIDERING A PLANT EXPANSION PROGRAM FO THE FOLLOWING YEAR THAT WILL PERMIT AN INCREASE OF $900,000 IN YEARLY SALES THE EXPANSION WILL INCREASE FIXED COSTS BY S212,000 BUT WILL NOT IMPACT THE RELATIONSHIP OF VARIABLE COSTS MAX OPERATING PROFIT UNITS 84,000.00 3,780,000.00 SALES TOTAL VARIALBE COSTS CONTRIBUTION MARGIN TOTAL FIXED COSTS OPERATING INCOME 3,780,000.00 Insert v 28 28. O WE .00 -> 0 Conditional Format Formatting as Table Delete Format 8 Cell Styles V Sort & Filter Find & Select Analyze Data Sensitiv L N O Q 64000 UNITS SOLD TOTAL VARIALBEE COSTS UNITS SOLD VARIABLE COST PER UNIT 64000 UNITS TOTAL FIXED COSTS CONTRIBUTION MARGIN PER UNIT BREAKEVEN IN UNITS 64000+20000 84000 UNITS FIXED COSTS SALES PRICE PER UNIT VARIABLE COSTS PER UNIT CONTRIBUTION MARGIN PER UNITY 84000 UNITS FIXED COSTS TOTAL FIXED COSTS CONTRIBUTION MARGIN PER UNIT BREAKEVEN IN UNITS 84000 UNITS FIXED COSTS PLUS PROFIT TOTAL FIXED COSTS + 692,500 PROFIT CONTRIBUTION MARGIN PER UNIT BREAKEVEN IN UNITS - = il lin Merge & Center v D H M 0 FOR THE UPCOMING YEAR CULPEPER PRODUCTSS ANTICIPATES A UNIT SELLING PRICE OF $150, A UNIT VARIABLE COST OF $110 AN FIXED COSTS OF $800,000 BREAKEVEN SALES IN UNITS TOTAL FIXED COSTS CONTRIBUTION MARGIN PER UNIT BREAKEVEN IN UNITS TOTAL FIXED COSTS PLUS TARGET PROFIT CONTRIBUTION MARGIN PER UNIT TARGETED UNITSALES SALES 32000 UNITS VARIABLE COSTS 32000UNITS CONTRIBUTION MARGIN FIXED COST OPERATING PROFIT (LOST) BIU Merge & Center Conditioni Formattin D DATA FOR THE TWO TYPES OF FROZEN PIZZAS FOR NF PIZZA ARE AS FOLLOWS PRODUCT 12 PIE 16 PIE UNIT SELLING PRICE $ 12.00 $ 15.00 UNIT VARIABLE COST $ 3.00 $ 4.00 SALES MIX PERCENT 30% 70% ESTIMATED FIXED COSTS $ 46,800.00 DETERMINE THE SALES OF EACH PRODUCT TO GET TO BREAKEVEN 12 PIE 16 PIE COMPOSITE CM 0 0 SELLING PRICE VARIABLE COST CONTRIBUTION MARGIN MIX PERCENT CONTRIBUTION MARGIN TO TOTAL MIX o 0 0 0 TOTAL FIXED COSTS COMPOSITE CM TOTAL UNITS SOLD AT BREAKEVEN HIV/0! #DIV/01 #DIV/01
