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Cost-Volume-Profit Analysis Data Section Fixed Variable $6.90 14.10 9.00 $675.000 2.25 Production costs Direct materials Direct labor Factory overhead Selling expenses Sales salaries & commissions Advertising Miscellaneous selling expense General expenses Office salaries Supplies Miscellaneous general expense 291,000 142,500 48,600 0 276,000 36,900 45,000 $1,515.000 $33.00 Projected unit sales Selling price per unit 360,000 $48.00 $0.00 $750,000 Target net income Answer Section Contribution margin per unit Contribution margin ratio FORMULAI FORMULA Break-even point in units Units needed to achieve target net income FORMULA3 FORMULA4 Break-even point in dollars Sales dollars needed to achieve target net income FORMULAS FORMULA Net income based on projected unit sales (cell C22) FORMULA7 Cost-Volume-Profit Analysis Data Section Variable $4.30 4.70 3.00 $225,000 0.75 Production costs Direct materials Direct labor Factory overhead Selling expenses Sales salaries & commissions Advertising Miscellaneous selling expense General expenses Office salaries Supplies Miscellaneous general expense 97,000 47,500 16,200 1.25 87,000 12,300 15,000 $500.000 Projected unit sales Selling price per unit Target net income $14.00 90,000 $20.00 $200,000 Answer Section Contribution margin per unit Contribution margin ratio FORMULA1 FORMULA2 Break-even point (units) Target net income (units needed to achieve) FORMULA3 FORMULA4 Break-even point (sales dollars) Target net income (sales dollars needed to achieve) FORMULAS FORMULA Projected net income FORMULAZ