Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help calculating the break even revenue thank you Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $2,000,

need help calculating the break even revenue thank you image text in transcribed
Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $2,000, and total fixed costs are $2,000 (no data on units). a) Compute the contribution margin ratio: CMR = .6 b) Write down the CVP relation (version 2): profit as a function of sales revenue. Profit = 6 * Revenue - 2000 (e.g., if profit = 0.1*Revenue-500, enter 0.1 in the first box and 500 in the second box). c) Predict profit at sales revenue of $10,000: 4000 d) Your boss gave you a profit target of $5,000. How much do you need to sell in dollars to meet this target? 11666.67 e) Compute the breakeven revenue: 4000 X f) When sales revenue increases by $1,000 (from any Initial level in the relevant range), profit increases by: CMR $1,000 - $600 not enough information (1-CMR)* $1,000 - $400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

7th Edition

0470293039, 978-0470293034

More Books

Students also viewed these Accounting questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago