Question
Using the formula, perform the CVP analysisofSportzWatch: Forecast sales volume (units) 12 000 Sales price (per unit) $150 Variable cost (per unit) $120 Fixed costs
Using the formula, perform the CVP analysisofSportzWatch:
Forecast sales volume (units) 12 000
Sales price (per unit) $150
Variable cost (per unit) $120
Fixed costs $300 000
Total assets $750 000
Target return on assets 20%
From this informationcalculate the following:
Contribution margin (CM):
Contribution margin per unit (CMU)
Contribution margin ratio (CMR)
Break-even point in units (BPU)
Break-even point in dollars (BP$)
Estimated profit
Target profit
Units to achieve target profit
Revenue to achieve desired profit
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
