HANDOUT 2-COST-VOLUME-PROFIT ANALYSIS THIS HANDOUT CONSISTS OF PARTS A AND B PART A Storbeck Sports sells...

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HANDOUT 2-COST-VOLUME-PROFIT ANALYSIS THIS HANDOUT CONSISTS OF PARTS A AND B PART A Storbeck Sports sells decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. The company buys the licensed decals from a supplier for $1.25 each and spends an additional $0.75 in variable operating expenses/costs per decal (the remaining amount of operating expenses are considered fixed). The results of last month's operations are as follows - based on sales of 2,000 decals: DESCRIPTION AMOUNT QUESTION ANSWER Sales Revenue $10,000 Cost of Goods Sold $2,500 What is the Variable Cost Per Unit? Gross Profit $7,500 Operating Expenses $3,000 What are the Total Fixed Costs? Operating Income $4,500 USING THE INFORMATION PROVIDED, COMPLETE THE CVP ANALYSIS FOR STORBECK SPORTS DESCRIPTION AMOUNT REQUIRED - SHOW WORK HERE BREAKEVEN UNITS BREAKEVEN IN SALES $ (USE CM RATIO %) # OF UNITS TO REACH $12,000 OF DESIRED INCOME ACCT 201 | MANAGERIAL ACCOUNTING I HANDOUT 2 - CHAPTER 3 | PAGE 1 HANDOUT 2-COST-VOLUME-PROFIT ANALYSIS THIS HANDOUT CONSISTS OF PARTS A AND B PART A Storbeck Sports sells decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. The company buys the licensed decals from a supplier for $1.25 each and spends an additional $0.75 in variable operating expenses/costs per decal (the remaining amount of operating expenses are considered fixed). The results of last month's operations are as follows - based on sales of 2,000 decals: DESCRIPTION AMOUNT QUESTION ANSWER Sales Revenue $10,000 Cost of Goods Sold $2,500 What is the Variable Cost Per Unit? Gross Profit $7,500 Operating Expenses $3,000 What are the Total Fixed Costs? Operating Income $4,500 USING THE INFORMATION PROVIDED, COMPLETE THE CVP ANALYSIS FOR STORBECK SPORTS DESCRIPTION AMOUNT REQUIRED - SHOW WORK HERE BREAKEVEN UNITS BREAKEVEN IN SALES $ (USE CM RATIO %) # OF UNITS TO REACH $12,000 OF DESIRED INCOME ACCT 201 | MANAGERIAL ACCOUNTING I HANDOUT 2 - CHAPTER 3 | PAGE 1