CVP
Cost-Volume-Profit Analysis
Data Section
	Fixed	Variable
Production costs
Direct materials		$2.30
Direct labor		4.70
Factory overhead	$225,000	3.00
Selling expenses
Sales salaries & commissions	97,000	0.75
Advertising	47,500
Miscellaneous selling expense	16,200
General expenses
Office salaries	92,000
Supplies	12,300	0.25
Miscellaneous general expense	15,000
	$505,000	$11.00
Projected unit sales		120,000
Selling price per unit		$16.00
Target net income		$250,000
Answer Section
Contribution margin per unit		$5.00
Contribution margin ratio		31.25%
Break-even point in units		101,000
Units needed to achieve target net income		151,000
Break-even point in dollars		$1,616,000
Sales dollars needed to achieve target net income		$2,416,000
Net income based on projected unit sales (cell C22)		$95,000

USING THE INFORMATION ABOVE, CREATE A LINE CHART IN WHICH PROFIT OR LOSS IS PLOTTED ON THE Y-AXIS AND SALES VOLUME IS PLOTTED ON THE X-AXIS. THIS IS COMMONLY CALLED A PROFIT/VOLUME CHART. ALTHOUGH SALES VOLUME CAN BE EXPRESSED IN EITHER UNITS OR DOLLARS, USE UNITS FOR YOUR CHART. COMPLETE THE CHART TICKLER DATA TABLE. USE THIS TABLE AS A BASIS FOR PREPARING THE CHART.

Chart Data Table

Units	Sales	V. Costs	F. Costs	T. Costs
0	0	0	505000	505000
40,000	640000	440000	505000	945000
80,000	1280000	880000	505000	1385000
120,000	1920000	1320000	505000	1825000
160,000	2560000	1760000	505000	2265000

Chart Tickler Data Table
Units	Profit
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