1. Theta Electronics

Scenario: Cost-Volume-Profit (CVP) Analysis

Data: Theta Electronics manufactures electronic devices and reported the following financial data for the year 2023:

• Total Sales Revenue: $1,500,000
• Variable Costs: $700,000
• Fixed Costs: $300,000
• Units Sold: 50,000

Requirements: Calculate Theta Electronics' contribution margin ratio, breakeven point in units, and breakeven point in sales revenue. Perform a sensitivity analysis to evaluate the impact of changes in sales volume on profitability. Discuss the implications of the CVP analysis for Theta Electronics' pricing strategy and cost management. Analyze the risks and benefits associated with expanding production capacity based on the CVP analysis results. Recommend strategies for Theta Electronics to improve profitability and achieve its financial goals.