Question: For this project, you will create a scenario for a business or other organization and use CVP analysis to show the following: 1 . Breakeven
For this project, you will create a scenario for a business or other organization and use CVP analysis to show the following:
Breakeven in units
Breakeven in dollars
Target sales in units for achieving a $ target NI
Target sales in dollars for achieving a $ target NI
You realize that your scenarios actual capacity is limited to its breakeven number of units BEu as calculated in # above Calculate what the new sales price SP should be in order to achieve a $ NI using the BEu # above for sales volume Q
Same as # except this time calculate what the new variable cost per unit VC would need to be in order to achieve a $ NI using the BEu # above for sales volume Q
Requirements:
A Define each CVP variable for your scenario:
SP
VC
FC
B Calculate:
CM per unit
CM ratio
C Calculate # above, showing all calculations
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