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Project 3 : CVP Income Statement ( 1 0 points ) Instructions: Prepare your solutions in Excel and upload your Excel file to Moodle by

Project 3: CVP Income Statement
(10 points)
Instructions: Prepare your solutions in Excel and upload your Excel file to Moodle by the deadline specified by your instructor. Do NOT email your file!
The following information pertains to Fun in the Sun, Inc., a beach ball manufacturer:
Budgeted production costs for the coming year:
Direct materials per ball
Direct labor per ball
Variable overhead per ball
Total fixed overhead
$7
3
5
47,510
Budgeted selling and administrative costs for the coming year:
Fixed selling & admin expense
Shipping cost per ball
$28,510
1
In the coming year, Fun in the Sun plans to produce and sell 8,900 beach balls at a price of $28 each.
Instructions for Project 3:
Prepare a CVP income statement. Include columns for unit amounts and percentages.
Calculate the breakeven point in units and sales dollars.
Calculate the margin of safety in dollars.
Calculate the margin of safety ratio.
If Fun in the Sun wants to earn net income of $70,000, how many units must it sell?
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