COST BEHAVIOR (CVP) Assignment Required: YOU MUST show your calculations for full credit Chesapeake Company sells its only product for $60 per unit. Fixed costs per year amount to $384,000 and variable cost per unit = $36. 2. 1. Calculate the contribution margin per unit & contribution margin ratio Calculate the Breakeven Point (round your answers to the nearest unit or $) (a) Breakeven point in units (b) Breakeven point in $Sales using contribution margin ratio $ CM Ratio Calculated As: Refer to (1): If the firm sells a total of 1,000 units PAST the breakeven point are sold, predict Net Income (without preparing an income statement) 3. Given the breakeven point in $Sales calculated in (1) and the level of sales being 1,000 units past the breakeven point in (2), calculate the MARGIN OF SAFETY in $Sales 4. Prepare an Income Statement (variable costing/contribution margin format) proving your Net Income Prediction in (2)

Required: VOU MUST show your calcuhitions for full credit and variable cost per unit =536. 1. Calcelate the contribitionmargin per unit Calculate the Breakeven point (round your atriwen fo the nearest unit ar S) (a) Breakeven poent in units (b) Hreakevmn point in SSales using contribution margen ratios CM Ratio Calculated As: 2. Refer to (1): If the firm sells 1 total of 1,000 units PAST the breakiruen point are sold, predict Net Income (without preparing aft income statement) 3. Grven the breakeven point in SSales calculated in (1) and the level of sales being 1.000 units past the breakeven point in (2). calculate the MARGIN OF SAFETY in $5 ales 4. Prepare an income Statement (variable costite/contribution margin format) proving your Net Incortse Prediction in (2) A certain manufacturer makes 2 products: Sun vivors and umbellas, It selts the vison for 510 with a variable cost of $6. It sells umbrellas for 525 with a variable cost of 515 . This sfason it expects that 70x of its cales will be sun visors and umbrellas will represent 30x of all sales made. 7. (o) II fixed costs for the season are expected to be $390,000, how many total imils of product mist be sold in order to breakeven? UNIrs (rodind to nearest whole unit, if needed) (b) How many umbrellas will be sold at this breakeven point? Umbrellos (c) How many S's of Revenue will be earned from sun visors at this breakeven point?S (8.) Product 101 and 202 require the same machine but machine hours are limited. Demand for Product 101 is limited to 2,500 units; Demand for Product 2U