CLASS PRACTICE-CHAPTER 6 CVP ANALYSIS 1. Contribution margin ratio contribution margin/sales 2. Break even point (in units) - Fixed expenses/ contribution margin 3. Break even point (in dollars) - Fixed expenses/ CM Ratio 4. Contribution- expenses Sales minus variable 1. Sales - $250,000 (50,000 units); total variable expenses $190,000; total fixed expenses $36000 a) Find- CM ratio b) BEP IN UNITS c) BEP IN dollars Solution: 2. Sales $350,000SP PER UNIT = 350,000/5000 $ 70PER UNIT Variable cost $50000VC PER UNIT = 50,000/5000-$10 PER UNIT Fixed cost No. of units $90,000 5000 Calculate BEP in units and BEP in dollars: