Your newest clients, the Wailing Wallabies have recently produced a brand new album $($vinyl$),$ which they plan to sell on their website and at their shows. The vinyl album will sell for $$30,$ with a variable cost of $$10$ per album. The monthly fixed costs $($i$.$e$.$ storage space for the albums, insurance, utilities, etc.$)$ are $$1,000.$

Using an Excel document, complete a CVP Analysis, answering the questions below:

What is the contribution margin per album?

What is the contribution margin ratio?

What is the break$-$even point in terms of total albums?

What is the break$-$even point in terms of dollars?

Create a CVP Income Statement based on the break$-$even data above. Be sure to include both the total and per unit data.

How many albums must be sold in order to reach a monthly net income of $$500?$

How much in terms of sales much be generated in order to reach a monthly net income of $$500?$

Create a CVP Income Statement based on the desired net income above. Be sure to include both the total and per unit data.