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Item Option A Option B Option C S.P per unit 200 200 200 V.C per unit 120 150 170 C.M per unit 80 50 30
Item | Option A | Option B | Option C |
S.P per unit | 200 | 200 | 200 |
V.C per unit | 120 | 150 | 170 |
C.M per unit | 80 | 50 | 30 |
Total fixed cost | 2,000 | 800 | 0 |
C.M = Q * C.M per unit | 3200 | 2000 | 1200 |
O.I = C.M - T.F.C | 1,200 | 1200 | 1200 |
O.L = C.M / C.M - T.F.C | 2.67 | 1.67 | 1 |
(A) Assume Units sold increased by 50% Required: calculate O.I for each option.
(B) Assume Units sold Decreased by 50% Required: calculate O.I for each option.
(C) Another way to calculate (A).
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