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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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