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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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