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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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