SVSU my COST_VOLUME PROFIT Selling Price 5/5=100% Variable Costs 5.00 per unit 3/5= 60% 3.00 per unit FC + DNT Bey= cm/unit =$80,00045 t2 luasa nlund Fixed Costs: Rent 0% 2 Salaries Utilities, insurance, other 2.00 12,000 60,000 8,000 80,000 = 40,000 ats - 200,00 $ Key calculations and concepts to remember include... 1 BE in units? 40,000 C.M.? $2 C.M.R.? Udlo 2 BE in Dollars? 2007 3 Sales to generate $20,000 in profit? Graph? 4 Prepare income statement for Sales at 50,000 units. 5 Margin of Safety at 50,000 units? Margin of Safety Percentage? 6 Contribution margin at the BE point? Answer: FC 7 a. Operating leverage at 50,000 units? b. ? % increase in profits with a 10% increase in sales? 8 Cost-volume-profit assumptions 9 Multiple product issues S 200,000 150,000 50,000 25% VC Total 300,000 240,000 60,000 100,000 90,000 10,000 10% 25,000 25,000 15,000 (5,000 40,000 20,000 BE$ ? 133,333 66,667 200,000 10 Equation Method S = VC + FC + DNI sp/u* u = (vc/u *u) +FC+ DNI or $S =( VCR% * $S) + FC + DNI Kickham