Complete the cost-volume-profit analysis.

Original Data

Sales price per unit $50.00

Variable costs per unit $23.00

Fixed Costs $5,500

Monthly Volume 250 units sold

Target Profit Per Month $1,700

Assumption Changes

Expected Increase in Monthly Volume 10% Expected Increase in Variable Cost 2%

Required

Complete the following for the original data and for the assumption change.

Calculate the Contribution Margin in Units and Contribution Margin Ratio

Calculate the Breakeven Point in Units Sales and Sales Dollars

Calculate the Target Sales in Units and Dollars Calculate the Margin of Safety in Units and Margin of Safety Percentage

Calculate the Operating Leverage

Prepare a Contribution Margin Income Statement for the assumption change only.

Answer rating: 100% (QA)

Original Data 1 Contribution Margin per unit Sales Price per unit Variable Cost per unit Contribution Margin per unit 5000 2300 Contribution Margin pe... View the full answer