Let's say the following numbers are available after an analysis,

what is the CTO? (contribution to overhead)

Sales = $1.00

Variable costs = 0.8964

What is the CTO? ____________________________

This means the amount that can be applied to overhead after all

variable costs are paid. This was calculated as a % of sales.

Calculate breakeven point.

How many units (dollars) of sales are needed to

completely cover all costs?

Breakeven

=

_________Fixed costs_____________

(Sales dollars)

1.0 - Variable costs as a portion of net sales

Breakeven

=

_________Fixed Costs_____________

(Sales units)

Selling price per unit - variable cost per unit

Fixed costs are $1,149,722.

CTO figure from above ________________.

Calculate the breakeven sales volume in dollars __________________

Write your answer here.

Using the following numbers calculate the possible profit.

Actual sales = $13.410,000

Breakeven point = 11,097,703

What are sales above breakeven? ___________________

Multiply this by the CTO of _________________________

Estimated profit is ________________________________

Think about it - why did you use the CTO amount again? Book

as the answer.