Chapter $7-$ CVP Analysis

FlexFit is analyzing the profitability of its two main products$-$resistance bands and adjustable dumbbells.

Your task is to conduct Cost$-$Volume$-$Profit $($CVP$)$ analysis to help the company make informed decisions about pricing, volume, and profitability.

Notes: $1)$ Assume fixed costs are total monthly fixed operating expenses unless otherwise stated, $2)$ Show your formulas in Excel so your work is transparent. $3)$ Show final answers to two decimal where appropriate.

Data table:

Item

Amount

Resistance Band $($RB$)$ Sales Price

Resistance Band $($RB$)$ Variable Cost

Dumbbell $($DB$)$ Sales Price

Dumbbell $($DB$)$ Variable Cost

Fixed Costs

$$112,000$

Required Calculations:

Using the data table above:

Unit Contribution Margin for each product

Break$-$even units per product

Break$-$even dollars per product

Weighted Avg CM$/$unit $(60\%$ RB$,40\%$ DB$)$

Combined Break$-$even point in units. Round to whole number.

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