Assessable Homework 7 - Questions

Question 1 - CVP Analysis (18 marks)

Question 1 CVP Analysis (18 marks)e Brandon Manufacturing provides the data below relating to its single product for 2020: Selling price per unit $20 Annual fixed costs $280,800+J Variable costs per unit $14 Annual sales volume expected in 2020: 52,000 unitse Required:e (a) Complete the following table calculating each requirement listed in the table. (13 marks) 1. Contribution margin per unit 2. Contribution margin ratio Breakeven point in units 3. Breakeven point in sales dollars 4. Firm's profit if 46,800 units are sold 5. Firm's profit if 52,000 units are sold 6. Break even point (in units) if variable costs decreased by $2 per unite 7. Using the original data, what is the Break even point (in units) if variable 8. costs increased by $2 per unit (from the original cost) and fixed costs decreased by $100,000 (from the original cost) What would be the expected profit in 2020 if fixed costs increased by 9. $20,000?