A. Calculate the missing amounts in MVP's Income Statement presented for financial reporting purposes below:
	MVP, Inc.
	Income Statement
	For the Year Ended December 31, 2021
	Sales		$ 375,000
	Cost of Goods Sold:
	Direct Materials (variable)	100,000
	Direct Labor (variable)	20,800
	Manufacturing Overhead ($40,000 is fixed)	91,000
	Cost of Goods Sold		211,800
	Gross Profit		163,200	n/a
	Operating Expenses:
	Sales Commissions (variable)	12,500
	Shipping (variable)	2,500
	Advertising (fixed)	10,400
	Billing (of which $10,000 is fixed)	10,250
	Sales and Administrative Salaries (fixed)	43,200
	Total Operating Expenses		78,850
	Operating Income (Loss)		$ 84,350	n/a
Additional information:
	Sales Price per unit:	$15.00
All variable expenses in the company vary in terms of units sold
There was no change in inventory levels between the beginning and end of the year
B. Using the information above, calculate the missing amounts below:
	a. Units of product MVP sold in 2021:	25,000	n/a
Variable cost per unit for the following mixed costs:
	b. Variable Manufacturing Overhead per unit:	$ 2.16	n/a
	c. Variable Billing per unit:	$ 0.01	n/a
C. Using MVP's 2021 income statement above, prepare a contribution margin income statement below (all amounts should be a formula/link to the information provided above):
		Total	Amount
	Total Units	25,000	Per Unit	n/a
	Sales	$ 375,000	$ 15.00	n/a	n/a
	Variable Costs:
	Direct Materials	100,000	4.00	n/a	n/a
	Direct Labor	20,800	0.83	n/a	n/a
	Variable Manufacturing Overhead	91,000	3.64	n/a	n/a
	Sales Commissions	12,500	0.50	n/a	n/a
	Shipping	2,500	0.10	n/a	n/a
	Variable Billing	250	0.01	n/a	n/a
	Total Variable Costs	227,050	9.08	n/a	n/a
	Contribution Margin	147,950	$ 5.92	n/a	n/a
	Fixed Costs:
	Fixed Manufacturing Overhead	40,000		n/a
	Advertising	10,400		n/a
	Sales and Admin. Salaries	43,200		n/a
	Fixed Billing	10,000
	Total Fixed Costs	103,600		n/a
	Net Operating Income (Loss)	$ 44,350		n/a		Hint: Operating Income (Loss) must equal the original income (loss) in your income statement from above.
D. Calculate MVP's current breakeven point in both units and dollars:
	Units:	17,500	n/a
	Dollars (use the Contribution Margin Ratio to calculate):		n/a
E. Redo MVP's Contribution Margin Income Statement using the Vice President of Sales (VP) suggestions and projected increase in sales volume below (all amounts should be a formula/link):
	Reduce selling price by:	5.00%
	Increase advertising costs by:	$ 5,200
	Projected sales volume increase:	25.00%
		Total	Amount
	Units		Per Unit	n/a
	Sales			n/a	n/a	Hint: This amount represents the new selling price as recommended by the VP.
	Variable Costs:
	Direct Materials			n/a	n/a	Hint: Per unit variable costs are the same as the original income statement as the variable cost per unit remains
	Direct Labor			n/a	n/a	constant with changes in volume. However, total variable costs will change.
	Variable Manufacturing Overhead			n/a	n/a
	Sales Commissions			n/a	n/a
	Shipping			n/a	n/a
	Variable Billing			n/a	n/a
	Total Variable Costs			n/a	n/a
	Contribution Margin			n/a	n/a
	Fixed Costs:
	Fixed Manufacturing Overhead			n/a
	Advertising			n/a		Hint: This amount represents the new advertising costs as recommended by the VP.
	Sales and Admin. Salaries			n/a
	Fixed Billing			n/a
	Total Fixed Costs			n/a
	Net Operating Income (Loss)			#N/A
F. Using the budgeted contribution margin income statement in part E. above, calculate the following:
	a. Breakeven in units:		#N/A
	b. Operating Leverage Multiplier:		#N/A
Given a sales volume increase of 8%, operating income will increase by:
	c. Percent:		#N/A
	d. Dollars:		#N/A