Whirly Corporation's most recent income statement is shown below:

Total

Per Unit

Sales (12,500 units)

$450,000

per unit:$36.00

Less: Variable expenses

250,000

per unit:20.00

Contribution margin

200,000

per unit:$16.00

Less: Fixed expenses

185,000

Net income

$15,000

Required:

Prepare a new income statement under each of the following conditions (consider each case independently):

1.The sales volume increases by 1,000 units.

2.The sales volume decreases by 1,000 units.

The sales volume is 9,250 units...

Mauro Products has a single product, a woven basket whose selling price is $54, and variable cost is $45 per unit. The company's monthly fixed expenses are $26,550.

Required:

1.Compute the company's break-even point in unit sales using the equation method.

2.Compute the company's break-even point in sales dollars using the equation method and the CM ratio.

3.Compute the company's break-even point in unit sales using the contribution margin method.

4.Compute the company's break-even point in sales dollars using the contribution margin method and the CM ratio.

Karlik Enterprises has a single product, whose selling price is $24, and variable cost is $18 per unit. The company's monthly fixed expenses are $24,000.

Required:

1.Prepare a CVP graph for the company up to a sales level of 8,000 units.

2.Estimate the company's break-even point in unit sales using your CVP graph.