Workbook up 2 Make sure you fill in all Yellow cells. Yellow cells left blank will receive zero credit. Exercise F: Never Late DeEvery currently delivers packages for $9 each. The waruble cou s $3 po package, and feed costs are $60,000 per month 5 Compute the breck-even point in BOTH sales dollars and waits under each of the followme independent assumptions. 6 To points 1: The costs and selling price are as given above 2 Fixed costs are increased to $75.000. 9 3 Scaling price is increased by 10%%. (Fixed costs me $50,000) 10 4 Variable cost is increased to $4.50 per unit (Fixed costs are $50,000 and selling price is $9.)| 17 5. Calculate the margin of safety for each option aspamming tales were $140,000. 12 6. Comment which option would be the best and why In Exercise F 15 Accesspubon 1: Compute break even point is BOTH sales dollars and units with seking price : 50. variable costs = $3, and Exed cay . 560 000 per month 161 17 Step 1: To compete the BE in Units we first have to compare the Contribution Mega (CM) po Lice 19 contribution margin per unit sales price / ush variable cost / unit percent 22 Breakeven in Units 60.090 23 CM per Unit 20 Step 2 To compute the BE in Sales Dolled we fest have to compute the Contribution Mama (CM) Rath, 2B Sales Fixed Cost OR O O37 Breakeven in Sales Dorian = Sales priceyunit 40 41 2. Fixed costs increased to $75,090 43 Asse pticin 2: Compute break even pott in BOTHI sales dollars and exits with selling prote . $9. variable cops = $1, and fired costs - $75,020 pm month 45 Sup I' To compare the BE : Units we fire have to compute the Contribution Mugin (CM) par Ure Contribution marpin per unit sales price / unit varlyble cost / unit Fixed Costs units 53 jeep 2. To courputs the BE in Sales Dollm we first have to compute the Contribution Megh (CM) Radio OM FILO CM (DO NOT ROUND of you will not get the comoct answer for 14 win Dollar) Saber By Breakeven In Sales Dollars = Ford Coitt CMratio OR of breakeven in Sales Dollars Sales price/unit Breakeven in unity 60 1. Selling pike increated by 10%. Awwoption : Compute break even point h BOTH sales dollars and units with selling price = bill, variable costs = $3, and fond com = $401903 par Coach Step 1: Compute the Dew Eng pike Old telling prize Problem G Atemate Problem D Type here to search OWindow H 64 1. Selling price Increased by work Assist pros So Comrade breck even post in BOTH sales dollars and white with selling price : $771, wobble coin - $3, ned food costs # $50 000 par moat Step 1: Compute the new icling pike 73 poruns parent Old selling price peroni Step 1: To compare the BE in Units we fel have to compute the Contribarion March (CM) par Und Contribution margin per un sales prke / unit variable rest / unk is Breakeven in Unity units [Routed to new eat cost - 2 decimal places] CM per unit 60 Step 3. To compute the BE in Sales Dollars we feel have to compare the Cornerbackon Maran(CM) Res 91 CM rath (DO NOT ROUND of you will not get the comes snowed for It Salm putany Fixed Costs CM ratio OR too Breakeven In Sales Dollars ,Sales priceJune Probelm G Poop here to search OH 04 1. Variable costs increase to $4 50 per unit los Assimpson &: Comper break even port in BOTHI isles dollars and anits with selling price $9. weruble cock = $4.50, and fared com # $60 003 pa month 107 Step 1 To compete the BE in Upe we fru have to compare the Commbetion Marca ( 10 per Vist Mia Contribut an mingin per unit sales price / unit variable coit / unit 117 Breakeven In Units CMperunit ur tt Bound to nearest rent - ] decimal placeif 105 :16 Step 1 To compute the BE in Sales Dokes we fret have to compute the Counlation Mango (CM() Redis CMILIO 112 DO NOT ROUND of you will not get the conect anpots for Be Seenpoll 121 132 Brebbeven In Sales Dollars Fined Costa 154 OR They wil bestew out different due bergupdirt 127 Weak room in Salmi Dollars . Sales price/unit Breakeven in usiti 129 182 5. Gokulate margin of safer, for each option if sales are $140,690 137 Assumption 5: Calculate the margin of safety for rach asunagoin dave (1-1) i wala me $140, 030 135 Margin of Safety Current Salea Breakeven Salga Dollars 114 Optiond O Type have to search 9how Aning: Firere Selection Pines Sheet Vinay Workberk View TOCY 8137 X B C 121 122 Breakeven in Sales Dollar = Fixed Costs 123 CM ratio 124 125 OR These will be a low cents different due to rounding. 120 127 Breakeven in Sales Dollars =. Sales priceyunit Breakeven in units 128 129 130 131 132 5. Calculate margin of safety for each option if sales are $140,000 133 Assumption 5: Calculate the margin of safety for each assumption above (1 4) if sales are $140.000. 134 105 Margin of Safety = Current Sales Breakeven Sales Dollars 277 136 Option 1 137 Option 2 136 Option 3 139 Option 4 140 141 142 6. Comment which option would be the best and why 143 144 145 145 140 This Excel Worksheet was created by Amy Bohren SPA and is licensed under a Creative Commons Attribution 4 International License. 150