Question: Lambda Retail Scenario: Perform CVP Analysis Data: Sales Price per Unit: $80 Variable Cost per Unit: $50 Fixed Costs: $200,000 Requirements: Calculate the Contribution Margin

Lambda Retail

Scenario: Perform CVP Analysis

Data:

  • Sales Price per Unit: $80
  • Variable Cost per Unit: $50
  • Fixed Costs: $200,000

Requirements:

  1. Calculate the Contribution Margin per unit and Contribution Margin Ratio.
  2. Determine the Breakeven Point in units and sales dollars.
  3. Perform sensitivity analysis for a 15% increase in sales volume.
  4. Discuss the implications of CVP analysis on pricing and profitability for Lambda Retail.
  5. Recommend strategies to improve the breakeven point and overall profitability.

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