Question: I do not understand how to project that has 1.Breakeven in units 2.Breakeven in dollars 3.Target sales in units for achieving a $50,000 target NI
I do not understand how to project that has
1.Breakeven in units
2.Breakeven in dollars
3.Target sales in units for achieving a $50,000 target NI
4.Target sales in dollars for achieving a $50,000 target NI
5.You realize that your scenario's actual capacity is limited to its breakeven number of units (BEu, as calculated in #1 above). Calculate what the new sales price (SP) should be in order to achieve a $10,000 NI using the BEu (#1 above) for sales volume (Q).
Requirements:
A.Define each CVP variable for your scenario:
SP =
VC =
FC =
B.Calculate:
CM per unit =
CM ratio =
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