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Required: Complete the following chart using the following information: Scenarios Original Scenario 1 Scenario 2 Percent change Unit Sales Price 1 0.9 0.85 Sales Volume
Required: Complete the following chart using the following information:
| Scenarios | Original | Scenario 1 | Scenario 2 |
| Percent change | |||
| Unit Sales Price | 1 | 0.9 | 0.85 |
| Sales Volume | 1 | 1.36 | 1.44 |
| Unit Variable Costs | 1 | 0.9825 | 0.978 |
| Fixed Cost | 1 | 1 | 1.015 |
| Unit Sales Price | 23 | 20.7 | 19.55 |
| Unit Variable Costs | 4.95 | 4.8634 | 4.8411 |
| Fixed Cost | 1,352,000 | 1,352,000 | 1,372,000 |
| Number of Units Sold | 162,000 | ||
| Target Profit | 1,600,000 | ||
| Original | Scenario 1 | Scenario 2 | |
| Sales | 3,726,000 | 4,560,624 | 4,560,624 |
| - Variable Costs | 801,900 | 1,071,499 | 1,129,332 |
| = Contribution Margin | 2,924,100 | 3,489,125 | 3,431,292 |
| - Fixed Costs | 1,352,000 | 1,352,000 | 1,372,000 |
| = Profit | 1,572,100 | 2,137,125 | 2,059,292 |
| Unit Contribution Margin | 18.05 | 15.8366 | 14.7089 |
| Unit Contribution Margin Ratio | 78.4783% | 76.5054% | 75.2373% |
| Breakeven Units | |||
| Breakeven Sales Dollars | |||
| Breakeven Units With Target Profit | |||
| Breakeven Sales With Target Profit | |||
| Margin of Safety Dollars | |||
| Margin of Safety Ratio | |||
| Degree of Operating Leverage | |||
| % Change in Profit | |||
| New Operating Profit | |||
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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
7th edition
77138449, 978-0077132682, 77132688, 978-0077138448
