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6.1 What is cost-volume-profit (CVP) analysis? 6.2 Break-even analysis Consider the following data: Selling price 10 per unit Variable cost 6 per unit Fixed costs 1,000 How many units need to be sold to breakeven? 6.3 Profit targets Using the same data as in Question 6.2, if fixed costs rise by 20% and the company need to make a profit of 350, how many units need to be sold? 6.4 Margin of safety If budgeted production and sales are 80,000 units and selling price is 10, variable cost is 5 per unit and fixed costs are 200,000, calculate the margin of safety. 6.5 A product has an operating statement for the sales of 1,000 units. Sales Variable costs Fixed costs 10,000 6,000 2,500 You are required to calculate: (i) Profitability to sales (ii) Contribution to sales (iii) Break-even sales in 1 value 2 units (iv) Margin of safety