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2 Cost Volume Profit (CVP) Analysis Ford Seasoning's management has compiled budgeted information regarding sales and production of 12-spice for January of 20xx. Use the information provided in the chart below to determine what quantity of 12-spice jars Ford Seasoning must produce and sell during 3 January 20XX in order to meet its target amount of operating income. 4 Item Amount 5 Expected selling price of a jar of 12-spice $ 11.50 6 Expected direct materials cost of producing a jar of 12-spice 3.00 7 Expected direct labor cost of producing a jar of 12-spice 2.00 8 Expected variable overhead cost of producing a jar of 12-spice 1.50 9 Expected monthly fixed costs 25,000 10 Target monthly operating income for January 20XX 50,000 11 Requirement Complete the following chart using CVP analysis techniques to determine how many jars of 12 12-spice the company must sell in order to meet its target operating income for the month. 13 Fixed Costs 14 Add: Target Operating Income for the Month 15 Total Required Contribution Margin 16 Divide by: Unit Contribution Margin 17 Required Sales Volume to Achieve Target Operating Income 18 19