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please solve for e,f,g,h 51. CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per
please solve for e,f,g,h
51. CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: a. Find the break-even point in units. b. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.) c. Find the break-even point in sales dollars. d. What amount of sales dollars is required to earn an annual profit of $140,000? e. Find the margin of safety in units and in sales dollars. f. Prepare a contribution margin income statement for the base case. g. What will the operating profit (loss) be if the sales price decreases 30 percent? (Assume total sales remains at 12,000 units.) h. Go back to the base case. What will the operating profit (loss) be if the variable cost per unit increases 10 percent? (Assume total sales remains at 12,000 units, and round to the nearest cent where appropriate.) has annual 8 + 9 d. The target profit point in sales dollars is calculated as: Target profit Fixed Costs Target Profit in sales dollars Contribution Margin Ratio $240,000 $140,000 $6 ) + $30 $380,000 0.80 11 12 + $30 14 15 $475,000 17 18 19 e. The margin of safety in units Projected sales in units) - Break-even sales (in units) units - units (from part a) 20 units 21 23 24 Margin of safety in sales dollars Projected sales (in sales $) Break-even sales in sales $) X units 26 per unit) (from parte) 27 29 31 P51 d. & e. P54 a, b, and P51f. g. and h. ... P54 d, e, f, g, and i TABCD F G H I J K L M N O P PROBLEMS (continued) 51. CVP and Sensitivity Analysis (Single Product) (continued) f. Contribution margin income statement for base case: units) units ) X Sales Variable costs Contribution margin Fixed costs Operating profit Start by calculating the new sales price: 6 New sales price X % decrease ) Then, prepare a new contribution income statement reflecting the change: X units) units) X Sales Variable costs Contribution margin Fixed costs K M 0 P 3 g. Start by calculating the new sales price: 16 New sales price X % decrease ) = 17 18 20 Then, prepare a new contribution income statement reflecting the change: X 22 23 units) units) 24 Sales Variable costs Contribution margin Fixed costs Operating loss 25 26 ($ 60,000) 27 28 h. Start by calculating the new unit variable cost: 30 New unit variable cost- X % increase ) 31 32 34 Then, prepare a new contribution income statement reflecting the change: X 36 37 units) units) X Sales Variable costs Contribution margin P51 d. 8e P51 f.. g., and h. P54 a. b. and P54 d, e, f, g, and i. ++ B C D F G H I J K L M N X units ) units) X E Sales Variable costs Contribution margin Fixed costs Operating loss ($ 60,000 h. Start by calculating the new unit variable cost: New unit variable cost X % increase ) Then, prepare a new contribution income statement reflecting the change: units) units) X Sales Variable costs Contribution margin Fixed costs Operating profit Step by Step Solution
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