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The following data is provided for a product to complete a cost-volume-profit analysis. Original Data Sales price per unit $50.00 Variable costs per unit $23.00
The following data is provided for a product to complete a cost-volume-profit analysis.
Original Data
Sales price per unit $50.00
Variable costs per unit $23.00
Fixed Costs $5,500
Monthly Volume 250 units sold
Target Profit Per Month $1,700
Assumption Change
Expected Increase in Variable Cost 2%
Complete the following for the original data and for the assumption change. In your project submission, there will be two sets of calculations and one contribution margin income statement:
- Calculate the Contribution Margin in Units and Contribution Margin Ratio
- Calculate the Breakeven Point in Units Sales and Sales Dollars
- Calculate the Target Sales in Units and Dollars
- Calculate the Margin of Safety in Units and Margin of Safety Percentage
- Calculate the Operating Leverage
- Prepare a Contribution Margin Income Statement for the assumption change.
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