Problem 54A 500,000 Units Traditional Income Statement 1 Look at the Income Statement to the right Revenue $ 2,500,000.00 Revenue is 500,000 units sold for $2,500,000 Cost of Goods Sold $ 2,140,000.00 Look at this income statement - they lost $100,000 Gross Profit S 360,000.00 How many more would they have had to sell to break even profit)? Selling Expense Admin Expense s 250,000.00 210,000.00 $ (100,000.00) 2 Look at the CVP template file on Canvas and see if you can put the given revenue and costs into a CVP Income statement for Tanek Company. The problem gives the variable and fixed amounts for each type of expense Create CVP Income Statement Below 3 Use the following formulas to find the Break even points Break even in Units = Fixed Costs / Unit Contribution Margin Break even in $$ = Fixed Costs / Contribution Margin% NOTE: The break even in units will not be a whole number you will have to round. Answers: Break even in Units Break even in SSS Do they make a profit? How Much? 4 Raise the selling price by 20% Leave units and costs the same 5 Company sells 2 products Products % of Business Contribution Margin 0.3 Tablets MP3 Players 0.35 Fixed Cost $ 120,000 Break Even in $$$$$ b c How much Tablets How Much MP-3 Players Problem 54A 500,000 Units Traditional Income Statement 1 Look at the Income Statement to the right Revenue $ 2,500,000.00 Revenue is 500,000 units sold for $2,500,000 Cost of Goods Sold $ 2,140,000.00 Look at this income statement - they lost $100,000 Gross Profit S 360,000.00 How many more would they have had to sell to break even profit)? Selling Expense Admin Expense s 250,000.00 210,000.00 $ (100,000.00) 2 Look at the CVP template file on Canvas and see if you can put the given revenue and costs into a CVP Income statement for Tanek Company. The problem gives the variable and fixed amounts for each type of expense Create CVP Income Statement Below 3 Use the following formulas to find the Break even points Break even in Units = Fixed Costs / Unit Contribution Margin Break even in $$ = Fixed Costs / Contribution Margin% NOTE: The break even in units will not be a whole number you will have to round. Answers: Break even in Units Break even in SSS Do they make a profit? How Much? 4 Raise the selling price by 20% Leave units and costs the same 5 Company sells 2 products Products % of Business Contribution Margin 0.3 Tablets MP3 Players 0.35 Fixed Cost $ 120,000 Break Even in $$$$$ b c How much Tablets How Much MP-3 Players