Sales volume in units 100 Revenue Variable costs $5,000 $4,000 Contribution margin $1,000 Fixed costs Profit $600 $400 a) Compute the following items: price= 50 unit VC= 40 unit CM= 10 b) Write down the CVP relation. Profit = 10 * volume - 600 (e.g., if Profit=4 volume-1000, enter 4 in the first box and 1000 in the second box). c) Predict profit at sales volume of 120 units: 600 d) Your boss gave you a profit target of $700. How many units do you need to sell to meet this target? e) Compute the breakeven point: breakeven volume = breakeven revenue = f) Compute the margin of safety at current sales volume of 100 units: (e.g., if your answer is 20%, enter 20 without the % sign) If sales decrease by 35%, will you lose money? YES CNO If sales decrease by 45%, will you lose money? YES ONO 9) When sales volume increases by 10 units (from any initial level in the relevant range), profit increases by: unit CM 10 $100 Cunit VC 10 - $400 not enough information price 10 - $500